Nvidia’s Growth Potential Amid Challenges: AI Demand and Product Line Momentum Drive Buy Rating

Susquehanna analyst Christopher Rolland has reiterated their bullish stance on NVDA stock, giving a Buy rating today.

Christopher Rolland has given his Buy rating due to a combination of factors that suggest Nvidia’s potential for growth despite some current challenges. He acknowledges that Nvidia’s revenue was impacted by China’s H20 restrictions, leading to a reduction in expected earnings. However, he remains optimistic about the company’s future, particularly due to the strong demand for AI and the anticipated increase in hyperscale capital expenditures by major players, which is expected to grow by 40% year-over-year in 2025.
Additionally, Rolland highlights the positive momentum in Nvidia’s Blackwell product line, with significant revenue growth expected as OEMs like HPE and Super Micro have already begun shipments. The gaming segment is also expected to experience strong growth as supply constraints ease. Furthermore, Nvidia’s advancements in generative AI and Omniverse are seen as key drivers for future growth. Despite some mixed signals in the automotive sector, Rolland maintains a positive outlook on Nvidia’s overall potential, reiterating a price target of $180.

According to TipRanks, Rolland is a 5-star analyst with an average return of 14.8% and a 54.49% success rate. Rolland covers the Technology sector, focusing on stocks such as Nvidia, Silicon Laboratories, and Semtech.

In another report released today, KeyBanc also maintained a Buy rating on the stock with a $190.00 price target.