Nvidia’s Strong Market Position and Growth Potential Drive Buy Rating

DBS analyst Fang Boon Foo has maintained their bullish stance on NVDA stock, giving a Buy rating yesterday.

Fang Boon Foo has given his Buy rating due to a combination of factors that highlight Nvidia’s strong market position and growth potential. The strategic partnership with Mistral AI to build AI cloud infrastructure, along with the CEO’s vision for expanding AI factories in Europe, underscores Nvidia’s leadership in AI infrastructure development. The company’s cutting-edge GPUs, designed for high-powered computing in AI, analytics, and scientific computing, further solidify its dominant market share in AI-chips.
Nvidia’s consistent revenue growth, with management’s guidance indicating a robust demand for its AI-chips, supports the Buy rating. The company’s strong fundamentals, including its ability to maintain high margins and a diverse revenue base, are seen as positives for future growth. Despite a lower target price adjustment, Nvidia’s strategic initiatives and market leadership position it well for continued success, with potential benefits from upcoming semiconductor tariff policies and a firm CAPEX pipeline from major tech companies.

Boon Foo covers the Technology sector, focusing on stocks such as Nvidia, Broadcom, and Marvell. According to TipRanks, Boon Foo has an average return of 33.7% and a 72.34% success rate on recommended stocks.

In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $190.00 price target.