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Investing.com -- Nvidia stock could break out to new highs following its earnings report, according to Lynx Equity, which has raised its price target from $140 to $160.
“After a couple of quarters of inline results, we think NVDA has the potential to provide upside to muted investor expectations,” the firm wrote in a new note.
Lynx, which had previously highlighted concerns such as heating issues with the GB300 GPU and tariff exposure, now sees many risks as “priced in.”
The analysts credited Nvidia’s ability to “steamroll through” challenges ranging from delayed product launches and trade restrictions to grid limitations and scaling constraints.
They cited new growth vectors and capacity expansion as reasons for optimism.
“GB200 has overcome its teething issues,” Lynx said, pointing to a sharp ramp-up in production at Foxconn (SS:601138) and a $500 million new manufacturing campus in Texas. Additionally, a resurgence in CoWoS capacity build at TSMC signals recovery in Nvidia’s supply chain.
Lynx also highlighted Nvidia’s “stealth entry” into Edge AI through its partnership with MediaTek, calling it a significant long-term opportunity, particularly in automotive and enterprise markets.
Tariff risks appear largely mitigated, according to the firm. “NVDA has in place a carefully crafted strategy to avoid nearly all tariffs,” Lynx said, noting recent exemptions from the U.S. Commerce Department and Nvidia’s diversified manufacturing footprint.
Lynx also pointed to “mega deals” such as the $500 billion Stargate project and new funding for AI clients like OpenAI and CoreWeave as likely to support future revenue growth.
“NVDA is on the verge of breaking out of the range and is headed for new highs,” Lynx concluded, maintaining a bullish stance into the earnings release.