Analysts Stay Bullish on Nvidia (NVDA) Despite Rising Competitive Pressures from China

Nvidia Corp. (NASDAQ:NVDA) is one of the best ESG stocks to buy now according to hedge funds. On September 11, Reuters reported that Alibaba Group (NYSE:BABA) and Baidu (NASDAQ:BIDU) have begun training certain AI models on internally designed chips, marking a shift away from complete reliance on Nvidia processors.

According to the news portal The Information, Alibaba has been using its own chips for smaller models since early this year, while Baidu is testing its Kunlun P800 chip to train new versions of its Ernie AI model. Both firms, however, continue to depend on Nvidia Corp. (NASDAQ:NVDA) hardware for their most advanced workloads.

Analysts Stay Bullish on Nvidia (NVDA) Despite Rising Competitive Pressures from China

The move reflects Beijing’s push for Chinese companies to rely more on domestic technology as U.S. export limits increase. For Nvidia, however, the near-term effect is minimal, since demand for its GPUs, especially in data centers, still outpaces supply.

Most analysts maintain a Buy or equivalent rating on the stock, highlighting Nvidia’s strong positioning in global AI infrastructure despite rising competition.

As a reflection of this broader optimism, an analyst from DA Davidson upgraded Nvidia (NASDAQ:NVDA) to Buy from Neutral on September 11, raising its price target to $210 from $195. The analyst pointed to its “increasingly optimistic view” on AI compute demand, arguing this secular trend will sustain growth into next year and beyond, outweighing competitive risks.

Nvidia Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software.

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.