Bernstein reiterates Outperform rating on Nvidia stock, maintains $275 price target

Investing.com - Bernstein has reiterated an Outperform rating on Nvidia (NASDAQ:NVDA) stock with a price target of $275.00, according to a recent research note.

The firm’s analysis follows Nvidia’s weekend memo addressing several bearish viewpoints that have circulated recently in press reports and on social media platforms including Twitter/X.

The memo specifically addressed concerns about accounts receivables, working capital, depreciation lifetime, revenue circularity, and other issues that have been raised by market skeptics.

Bernstein indicated that it considers Nvidia’s responses to these bearish points "broadly valid and useful" in addressing market concerns about the semiconductor giant’s financial position.

The research firm noted that while the memo appears to have been distributed exclusively to sell-side analysts, it has generated significant interest, with Bernstein receiving "many, many requests from investor clients" seeking access to the document.

In other recent news, Nvidia’s financial performance remains a focal point for investors, with Raymond James reiterating a Strong Buy rating for the company. The firm has set a price target of $272.00, emphasizing Nvidia’s leadership in AI computing and its strategic updates in GPU die architecture. Meanwhile, Alphabet’s expansion into TPU AI chips is posing a challenge to Nvidia’s dominance in the AI chip market, potentially altering the competitive landscape. Additionally, Aletheia Capital has downgraded Dell from Buy to Hold, partly due to Nvidia’s competitive initiatives, which could affect Dell’s system-level customization value. This downgrade also reflects concerns over future margin pressures for Dell related to input costs. Despite these challenges, Nvidia continues to address investor concerns, as evidenced by its recent memo countering fraud allegations. These developments highlight the dynamic and competitive nature of the AI and semiconductor sectors, with companies vying for leadership and market share.

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