TD Cowen Maintains Buy on Nvidia (NVDA), Expects Strong Q2 Despite Uncertainty

Nvidia Corp. (NASDAQ:NVDA) is one of the most profitable tech stocks to invest in now. On August 18, TD Cowen’s Joshua Buchalter reiterated a Buy rating on Nvidia Corp. (NASDAQ:NVDA), raising his price target from $175 to $235, implying nearly 30% upside. He argued that Nvidia Corp. (NASDAQ:NVDA) is well-positioned to outperform expectations ahead of its fiscal Q2 results, scheduled for release on August 27, despite uncertainties tied to H20 chips and China-related restrictions.

Buchalter pointed to Nvidia Corp.’s (NASDAQ:NVDA) strong fundamentals and smooth transition from its Blackwell to Blackwell Ultra architectures, both of which are critical for AI and high-performance computing workloads. He also highlighted Nvidia Corp.’s (NASDAQ:NVDA) valuation relative to peers, noting that the stock trades at a discount to Broadcom despite offering what he views as a cleaner investment narrative.

Consensus expects Nvidia Corp. (NASDAQ:NVDA) to post Q2 adjusted EPS of $1.0 on $45.8 billion in revenue. Buchalter’s October-quarter revenue forecast of $55 billion were ahead of street estimates, but excluded any H2O-related sales due to uncertainty surrounding the timing. He added that 2026 earnings expectations could trend closer to $7 per share, with greater clarity expected over the next couple of quarters.

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.