Analysts ‘Cautious About Near-Term Volatility’ In AI Demand on Lackluster Nvidia Upgrade

Daiwa analysts have warned that they are “cautious about near-term volatility” for artificial intelligence (AI) hardware demand following Computex 2025. The tech expo took place last week and ended on Friday. Daiwa analysts said it was largely a non-event and highlighted how this could impact hardware demand in the AI sector.

According to the firm’s analysts, there wasn’t much at Computex that suggested AI hardware demand will be strong in 2025. The analysts also pointed to the limited differences between Nvidia’s (NVDA) GB200 server and its new GB300 server as a potential downside for 2025 demand.

What About Long-Term AI Demand?

Daiwa analysts still have high hopes for AI demand in the long-term. They stated “we have a positive long-term view on AI computing demand, driven by the ongoing shift to agentic and physical AI.” This has them more concerned with how AI hardware demand will be in 2026, than in 2025.

While the warning comes alongside Nvidia’s modest server upgrade, limited AI hardware demand could affect other companies in the sector. Advanced Micro Devices (AMD), IBM (IBM), Super Micro Computer (SMCI), Dell Technologies (DELL), and Lenovo (LNVGF) are all companies that could suffer if AI demand remains low in the near-term.

Which AI Stocks Are Worth Investing In?

Turning to the TipRanks stock comparison tool, traders can see which AI stocks have the best analyst ratings and price targets. NVDA, DELL, and LNVGF stand out as AI server stocks with consensus Strong Buy ratings. Of them, Nvidia and Lenovo offer the best upside potential at 25.3% and 27.91%, respectively. However, NVDA’s stock price target is significantly higher than LNVGF’s at 164.51, compared to $1.65. Nvidia is also a leader in the AI space, making it a potentially safer investment compared to others on this list.

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