DA Davidson raises Nvidia stock price target to $195 on long-term AI demand

Published 28/08/2025, 05:30
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Investing.com - DA Davidson raised its price target on Nvidia (NASDAQ:NVDA) to $195 from $135 while maintaining a Neutral rating following the company’s mixed second-quarter fiscal 2026 results. The semiconductor giant, currently trading near its 52-week high of $184.48, has demonstrated remarkable momentum with a 45.4% return over the past six months.

The research firm noted that Nvidia’s data center revenue came in slightly lower than expected in the quarter, with sentiment surrounding the results largely driven by continued concern about the company’s ability to sell H200 chips into China.

Despite these short-term challenges, DA Davidson cited its research on AI models, particularly on the algorithmic side, as the basis for the higher price target.

The firm stated it increasingly believes that demand for compute power is unlikely to subside in the foreseeable future, given trends observed in pre-training, post-training, and inference processes for AI systems.

DA Davidson maintained its Neutral rating on Nvidia stock despite the substantial increase in its price target.

In other recent news, Nvidia reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share of $1.04 compared to the forecasted $1.01. The company’s revenue for the quarter reached $46.7 billion, which was higher than the anticipated $46.1 billion. Nvidia’s guidance for the upcoming October quarter also exceeded market expectations, projecting revenue of $54 billion. This guidance does not account for potential revenue from Nvidia’s H20 chips, which could further boost earnings. Piper Sandler has reiterated its Overweight rating on Nvidia, maintaining a price target of $225. The firm highlighted the potential for Nvidia to generate between $2 billion and $5 billion in revenue from China during the current quarter. These developments reflect a positive outlook for Nvidia, as indicated by the company’s strong earnings performance and optimistic guidance.

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