Broadcom named strategic vendor for Walmart virtualization solutions
Investing.com -- Lynx Equity Strategy named Nvidia (NASDAQ:NVDA) its top semiconductor pick as it believes the tech giant will better weather the broad wave of global tariffs that are expected to disrupt the tech supply chain.
“We think NVDA has in place a carefully crafted strategy to avoid nearly all tariffs, a rare semis company to have achieved that feat,” said Lynx analyst KC Rajkumar, adding that the company’s sourcing and manufacturing approach puts it in a favorable position.
Nvidia’s AI servers source components primarily outside the U.S. and are assembled by system integrators in Taiwan, which helps insulate the company from tariff exposure on both sides of the Pacific.
Lynx had previously been cautious on Nvidia and turned negative heading into its fourth-quarter earnings, predicting a 20-point drop in the stock.
The chipmaker’s shares indeed fell sharply in the aftermath, and Lynx noted that the sell-off may have contributed to broader weakness across semis and tech before tariffs became a major concern.
But now the brokerage holds a more positive view. “We are going to set aside our long-running caution and get onboard NVDA as perhaps the best idea in semis while the focus on tariffs lasts,” Rajkumar wrote.
Concerns over weaker data center spending and competition from models like DeepSeek may persist, but Lynx expects these issues to be overshadowed by Nvidia’s relative advantage under the new tariff environment.
“Due to tariff mitigation plans NVDA has in place, we are now calling for NVDA to return to recent highs,” the note added.
Lynx set a price target of $140, implying more than 22% upside from the last closing price. The price objective is based on a 31x multiple to consensus 2025 EPS of $4.55.
Apart from Nvidia, Lynx also reiterated its preference for Micron (NASDAQ:MU) at $125 and Super Micro Computer (NASDAQ:SMCI) at $60, while noting that Dell (NYSE:DELL) could benefit from Nvidia’s supply chain dynamics.
China, according to Lynx, is unlikely to impose tariffs on Nvidia products due to its continued reliance on the company's AI hardware. “NVDA’s minimal-tariff status is likely to boost its multiple relative to semis peers,” Rajkumar said.