Nvidia’s (NVDA) Bullish Thesis Intact as AI Demand Stays Strong, Reaffirms TD Cowen

Nvidia Corporation (NASDAQ:NVDA) is one of the best stocks for a 20-year long-term stock portfolio. Nvidia’s results appeared like the event of the year, with many investors and analysts pinning hopes on a strong result and outlook, which would have meant that the AI-led investment story is fully intact.

Following the company’s better-than-expected Q2 results, on August 27, TD Cowen analyst Joshua Buchalter reaffirmed his Buy rating on Nvidia Corporation (NASDAQ:NVDA) with a $235 price target. While the beat was smaller than recent quarters, Buchalter expressed confidence given sustained AI demand and Nvidia’s transition from Blackwell to Blackwell Ultra GPUs. He also noted gross margins are trending toward 75%, and the company is making continued progress on the Rubin GPU roadmap.

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In addition, Buchalter highlighted that Nvidia Corporation’s (NASDAQ:NVDA) Gaming and Networking drove the upside. Networking strength was noticeable as it experienced a 46% sequential growth, driven by stronger rack-scale sales. ‘Compute’ revenue declined due to the absence of $4 billion in China exports, though adjusted growth remained healthy.

However, Nvidia Corporation (NASDAQ:NVDA) guidance was weaker than expected. That said, the analyst excluded potential China sales from forecasts due to regulatory uncertainty, arguing that visibility remains limited. Despite near-term volatility, Buchalter continues to see Nvidia as his top pick, supported by structural demand for AI.

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.