DBS analyst Fang Boon Foo has maintained their bullish stance on NVDA stock, giving a Buy rating yesterday.
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Fang Boon Foo has given his Buy rating due to a combination of factors that highlight Nvidia’s strong market position and growth potential. Nvidia’s GPUs are considered top-tier and are essential for high-performance computing tasks, including artificial intelligence, analytics, and scientific computing. The company’s commitment to innovation is evident in its plans to annually upgrade its AI accelerators, with the upcoming Blackwell chips set to replace the current Hopper generation.
Nvidia’s robust demand for AI-chips, despite potential revenue losses, is reflected in its optimistic revenue guidance for FY26. The company expects demand for its AI-chips to exceed supply, further supporting its growth trajectory. Additionally, Nvidia’s strong fundamentals, such as maintaining superior margins and a solid net cash position, along with diverse revenue streams, contribute to its favorable outlook. These factors, combined with sustained AI capital expenditures from major tech players, underpin the Buy rating and the increased target price of USD180.
In another report released yesterday, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $185.00 price target.