- Nvidia Corp. (NVDA) shares edged up to $139.36 in premarket trading despite a historic $600 billion market cap drop in January, with Wall Street remaining bullish ahead of its February 26 earnings due to its attractive 32x forward PE valuation compared to peers.
- Analysts like HSBC’s Ryan Mellor and Keybanc’s John Vinh maintain ‘Buy’ and ‘Overweight’ ratings with targets of $175 and $190, respectively, citing strong AI GPU demand and innovative product shifts despite Deepseek concerns and manufacturing constraints.
- Loop Capital, Bank of America (BAC), and EvercoreISI also uphold positive ratings with targets from $175 to $190, highlighting Nvidia’s leadership in a $2 trillion market opportunity for accelerated computing and AI, driven by a robust ecosystem and upcoming product launches.
Nvidia Corp. (NVDA) shares nudged slightly higher to $139.36 in premarket trading on Thursday, reflecting a resilient investor sentiment despite the dramatic $600 billion market cap loss in late January triggered by the Deepseek event—the largest single-day drop in U.S. corporate history. Wall Street remains steadfastly optimistic as Nvidia approaches its pivotal earnings report on February 26, buoyed by the company’s relatively modest forward price-to-earnings ratio of 32.6 times, making it one of the more attractively valued AI stocks compared to peers like Broadcom (AVGO) at 36 times, Marvell Technology (MRVL) at 41 times, and Arm Holdings (ARM) at 76.3 times. Analysts from various firms continue to see Nvidia as a linchpin in the AI and accelerated computing revolution, with forecasts suggesting robust demand and innovative product pipelines that could propel its market dominance further.
Analysts across the board maintain bullish ratings, adjusting price targets with a mix of cautious optimism and bold projections. HSBC’s Ryan Mellor, despite trimming his FY26 data center revenue estimate by 11% to $209 billion, still sees it 14% above consensus and holds a ‘Buy’ rating with a $175 target, citing strong hyperscaler capital expenditure increases of 4%-26% as evidence of sustained AI GPU demand. Keybanc’s John Vinh raised his target to $190, arguing that manufacturing hiccups with the GB200 NVL server racks will be offset by shifts to other products like the HGX-based B200 and a surge in Chinese demand for H20 GPUs post-Deepseek, alongside creative financing of inventory that boosts recognized revenues.
Loop Capital’s Ananda Baruah and Bank of America’s (BAC) Vivek Arya both reiterated ‘Buy’ ratings at $175 and $190, respectively, pointing to Nvidia’s dual opportunity in accelerated computing and generative AI as a $2 trillion market potential over the next few years, with hyperscalers aiming to significantly boost non-CPU compute reliance. EvercoreISI’s Mark Lipacis also reiterated an ‘Outperform’ rating with a $190 target, emphasizing Nvidia’s unmatched software ecosystem and development community, positioning it far ahead of competitors like Advanced Micro Devices (AMD) and Amazon (AMZN) AWS. This collective analyst enthusiasm underscores Nvidia’s strategic importance in an evolving tech landscape, where its upcoming Blackwell and Rubin product lines, alongside expansions into robotics and quantum technologies, could further solidify its lead despite near-term volatility risks tied to product transitions and geopolitical factors like China restrictions.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply