DA Davidson analyst Gil Luria weighed in on two of the market’s biggest tech names this week, issuing a bullish call on Nvidia (NVDA) while turning cautious on Apple (AAPL). For NVDA, the 5-star analyst upgraded Nvidia to Buy from Neutral and increased the price target to $210 from $195, implying 18.5% upside potential. Meanwhile, Luria downgraded Apple to Neutral from Buy and assigned a $250 price target, implying 8.68% upside potential.
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The analyst said Nvidia remains at the center of AI growth, while Apple is falling behind with a weaker product line. Let’s break down his views on both stocks.
Nvidia Wins Upgrade on AI Demand
Luria lifted his rating on Nvidia, citing strong demand for AI compute. He said that this surge in computing needs should sustain Nvidia’s strong performance well into next year and beyond.
While Luria acknowledged headwinds from hyperscaler spending, custom-built chips such as Google’s (GOOGL) TPUs, China demand volatility, and supply constraints, he said these factors are outweighed by the surge in compute needs. “The most important thing – the overwhelming growth in demand for compute – is the only thing that matters,” Luria wrote.
The analyst expects Nvidia to grow profits by about 40% over the next two years. He noted that the stock trades at roughly 28 times projected 2026 earnings, which he sees as reasonable given the company’s strong growth outlook. In his view, this makes Nvidia “the least expensive direct investment in the growth of AI.”
Apple Faces Downgrade on Weak Product Pipeline
In contrast, Luria cut his rating on Apple to Neutral, pointing to weak product updates and lack of near-term growth drivers. He said the iPhone 16, iPhone 17, and iPhone Air lines are not strong enough to trigger major upgrades, while the Vision Pro headset looks like a niche product.
Apple may announce a foldable iPhone next year, but Luria does not expect it to drive broad adoption. He noted that while Apple and Nvidia trade at roughly the same multiple, Apple’s earnings growth is projected at just 9% versus Nvidia’s 40%.
Luria explained that Apple may still serve as a defensive stock in a volatile market, but he favors Nvidia because of the stronger growth he sees from AI compute.
Which Is the Best Tech Stock?
We used the TipRanks Stock Comparison Tool to determine which stock is more favored by analysts. Wall Street has a “Strong Buy” consensus on Nvidia, backed by a 19% upside potential over the next 12 months. Meanwhile, Apple carries a “Moderate Buy” rating, with a smaller expected upside of about 5%.
