DA Davidson Lifts NVIDIA (NVDA) Price Target to $135 Despite ‘Neutral’ Stance

We recently published a list of 10 AI Stocks Gaining Wall Street’s Attention. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks that are gaining Wall Street’s attention.

One of the most notable analyst calls on Thursday, May 29, was for NVIDIA Corporation (NASDAQ:NVDA). DA Davidson analyst Gil Luria raised the price target on the stock to $135.00 (from $120.00) while maintaining a “Neutral” rating. NVIDIA specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

The rating revision follows Nvidia’s quarterly report, which demonstrated mixed outcomes. Its revenues of $44.06 billion topped the consensus estimates of $43.31 billion. However, the company missed out significantly based on the absence of H20 sales in China during the first and second quarters.

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

Luria said that the market may be underestimating the significance of Chinese sales to NVIDIA’s overall revenue, and that the uncertainty revolving around NVIDIA’s business in China is a major concern for the stock. Clear guidance from the Trump administration would provide a clear stance on the matter.

Nvidia’s latest earnings demonstrate how the company is resilient despite sales disruption from China, indicating robust demand for its products outside of the impacted region. At the same time, the H20 restrictions were enough to warrant caution from analysts.

“We maintain our NEUTRAL rating and raise our price target from $120 to $135 on NVIDIA following mixed earnings results that saw better than expected top-line numbers, but notable impact from the lack of H20 sales into China in Q1 and Q2. It is our belief that the Street is under-accounting Chinese contribution to NVIDIA revenue and that this topic represents the largest overhang on the stock, which will continue until we have an official position from the Trump administration that will give us resolution on the matter in one direction or the other.”

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