DA Davidson maintains Neutral on Nvidia with PT raised to $135.

DA Davidson maintains Neutral on Nvidia with PT raised to $135.

DA Davidson, a leading investment research firm, has maintained a Neutral rating on Nvidia (NVDA) while raising its price target to $135. The move reflects the firm's assessment of the company's current market position and future prospects.

Nvidia has been a significant player in the AI chip market, with its shares experiencing substantial volatility in recent quarters. The firm's latest earnings report showed robust revenue growth, driven primarily by strong demand for its AI-enabling chips. However, the company has faced challenges, including regulatory headwinds and inventory issues, which have impacted its stock price.

DA Davidson's decision to raise the price target to $135 suggests a cautious optimism about Nvidia's future performance. The firm's analysts acknowledge the company's strong financial health and the potential for continued growth in the AI sector. However, they also highlight the risks associated with regulatory challenges and market uncertainties.

The Neutral rating indicates that DA Davidson believes Nvidia's stock price is currently trading at a fair value, given the company's recent performance and market conditions. The firm's analysts have noted that while Nvidia's earnings have consistently topped estimates, the stock has failed to impress investors, leading to periodic sell-offs.

The recent earnings reports from Nvidia have shown mixed results, with revenue and earnings growth exceeding expectations in some quarters, but failing to impress investors in others. The company's stock has been affected by various factors, including the U.S.-China trade tensions and the impact of the H20 ban on its products.

DA Davidson's decision to raise the price target to $135 reflects a balanced view of Nvidia's current situation. The firm's analysts believe that the company's strong financial position and the potential for continued growth in the AI sector justify a higher price target. However, they also acknowledge the risks associated with regulatory challenges and market uncertainties, which have led to a Neutral rating.

In conclusion, DA Davidson's decision to raise the price target to $135 while maintaining a Neutral rating reflects a cautious optimism about Nvidia's future performance. The firm's analysts believe that the company's strong financial health and the potential for continued growth in the AI sector justify a higher price target. However, they also acknowledge the risks associated with regulatory challenges and market uncertainties, which have led to a Neutral rating.

References:
[1] https://www.investopedia.com/heres-how-much-traders-expect-nvidia-stock-to-move-after-earnings-11742132
[2] https://www.investing.com/news/analyst-ratings/citi-raises-nvidia-stock-price-target-to-180-on-strong-sales-93CH-4069636
[3] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2026