Gamers, Not Chinese AI Firms, Fueled Nvidia GPU Sales

Five-star UBS analyst Timothy Arcuri argued in a research note to clients that Nvidia’s (NVDA) strong gaming sector growth was fueled by gamers and not Chinese artificial intelligence (AI) companies. This was a concern some investors had after NVDA reported a sharp increase in RTX 50 Series sales in Q1.

While Arcuri said it’s possible that some AI firms did buy RTX GPUs to power their servers, this wasn’t the bulk of Nvidia’s sales. It instead had to do with supply shortages due to Nvidia’s own AI chip sales restricting RTX 50 Series cards. As a result, “growth was driven by back-filling the channel following these severe supply shortages.”

Arcuri also reiterated a Buy rating and $175 price target for NVDA stock, suggesting a 23.92% upside for the shares.

More Recent NVDA Stock Analyst Coverage

UBS wasn’t the only firm that updated its coverage of Nvidia stock recently. Several top analysts reiterated bullish positions on NVDA shares.

• Bank of America Securities analyst Vivek Arya reiterated a Buy rating and $180 price target, implying a 27.46% upside.
• Citi analyst Atif Malik kept a Buy rating and increased his price target to $180 from $150, suggesting a 27.46% upside.
• Jefferies analyst Blayne Curtis initiated coverage with a Buy rating and $185 price target, representing a possible 31% upside.
• DBS analyst Fang Boon Foo reiterated a Buy rating for NVDA shares.

NVDA stock jumped 2.8% yesterday and was up another 0.61% in pre-market trading today. The stock has also rallied 5.17% year-to-date and 15.35% over the past 12 months.

Is Nvidia Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Nvidia is Strong Buy, based on 35 Buy, four Hold, and a single Sell rating over the last three months. With that comes an average NVDA stock price target of $173.57, representing a potential 22.91% upside for the shares.

See more NVDA stock analyst ratings