Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on NVDA stock, giving a Buy rating on December 19.
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Tristan Gerra has given his Buy rating due to a combination of factors tied to Nvidia’s dominant role in AI and its expanding technology portfolio. He views the $20B non‑exclusive licensing agreement with Groq as a strategic move that strengthens Nvidia’s AI inferencing capabilities, while preserving GroqCloud as an independent platform and adding high‑caliber engineering talent from Groq’s CEO. Gerra also highlights Nvidia’s decision to de-emphasize its own SuperCloud initiative, which reduces potential channel conflict with hyperscalers and allows Nvidia to focus on supplying core silicon and software rather than competing directly with key customers.
Gerra’s discussions with AI supply-chain participants support the view that Nvidia can maintain roughly 70% share of the AI processor market via GPUs through 2030, underscoring the durability of its CUDA software ecosystem and rapid product cadence. He notes that while custom AI ASICs from companies like Google, Microsoft, and Meta will grow, these solutions face significant barriers to matching Nvidia’s software depth, and could ultimately expand Nvidia’s total addressable market rather than displace it. Based on this competitive positioning and earnings outlook, Gerra sets a $275 price target, implying a premium valuation multiple of 25x his FY2028 EPS estimate to reflect Nvidia’s superior growth and share in AI data centers, while acknowledging risks from competition, cyclicality, and inventory dynamics.
In another report released on December 19, Mizuho Securities also maintained a Buy rating on the stock with a $275.00 price target.