On Wednesday, DA Davidson maintained a Neutral stance on NVIDIA (NASDAQ:NVDA) shares, with a consistent price target of $135. The firm's analyst pointed out NVIDIA's significant announcements at the Consumer Electronics Show (CES), which highlighted the company's advancements in artificial intelligence (AI) across various categories. These innovations extend NVIDIA's reach beyond its established data center market.
NVIDIA's presentations at CES included the unveiling of a world model, new graphics chips, and a desktop private cloud solution. The analyst underscored the importance of NVIDIA's role in enabling AI applications, as evidenced by numerous CES showcases, such as a smart pet food dispenser, which would not be possible without NVIDIA's contributions to AI technology.
Despite the positive developments, DA Davidson noted a lack of substantial financial updates or a detailed roadmap for this year's data center products. The firm suggested that NVIDIA shares suffered the previous day due to the absence of significant news regarding Blackwell shipments or next-generation data center products.
DA Davidson has adjusted its financial projections upward based on recent comments from NVIDIA's customers, particularly Microsoft (NASDAQ:MSFT). Microsoft CEO Satya Nadella's remarks, tied to Microsoft's fiscal year ending in June, suggest that Microsoft's performance will significantly influence the data center sector's growth when they report in July.
However, DA Davidson remains conservative with its forecasts, positioning below the consensus for fiscal year 2026 and maintaining the lowest estimates for fiscal year 2027 (calendar year 2026).
The $135 price target set by DA Davidson reflects a 35x earnings multiple, which aligns with historical norms for NVIDIA.
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