Nvidia is set to report earnings in about two weeks, and Evercore ISI has upgraded its outlook despite recent losses due to Chinese artificial intelligence startup DeepSeek. The firm added Nvidia to its tactical outperform list with a $190 price target, implying more than 46% upside potential.
DeepSeek’s low-cost open-source model has raised concerns among investors about spending and competition in the AI space. However, Evercore ISI argues that the consensus among AI experts is that DeepSeek’s cost improvements are evolutionary rather than revolutionary, which should increase demand for Nvidia’s high-performance computing solutions.
The firm expects external workloads, such as Amazon Web Services’ cloud infrastructure, to remain dominated by Nvidia due to its robust software ecosystem and breadth of development community. Additionally, demand for Nvidia’s GPUs is still outstripping supply, despite possible shipment delays for the company’s Blackwell chips.
Evercore ISI joins a majority of analysts on Wall Street with a similar view, with 57 out of 63 having a strong buy or buy rating. The consensus target price is around $172, representing more than 32% upside potential. Nvidia shares have risen over 3% following the tactical call.
Source: https://www.cnbc.com/2025/02/10/buy-nvidia-for-a-trade-into-earnings-later-this-month-says-evercore-isi.html