Evercore ISI analyst Mark Lipacis is advising investors to buy Nvidia Corp.’s stock ahead of the company’s earnings report, despite concerns about its dependence on Chinese artificial-intelligence software DeepSeek.
Nvidia shares have been weighed down in recent weeks due to worries that DeepSeek’s breakthroughs may reduce demand for the company’s graphics processing units. However, Lipacis argues that these fears are overdone and that Nvidia is poised for an upbeat earnings report.
Lipacis believes that customers will still need powerful GPUs, even with advancements in AI software like DeepSeek. He notes that application-specific integrated circuits (ASICs) made by Broadcom Inc. may not be a viable alternative to Nvidia’s offerings. Instead, Lipacis predicts that Nvidia will benefit from increased demand for its GPUs in emerging markets and applications such as autonomous vehicles and gaming.
As the company prepares to release its earnings report, investors may have an opportunity to buy Nvidia stock at a discount, according to Lipacis. His recommendation suggests that the analyst is optimistic about Nvidia’s future prospects, despite current market concerns.
Source: https://www.marketwatch.com/story/buy-nvidias-stock-ahead-of-earnings-this-analyst-makes-the-case-459abcfd