Nvidia stock acquisition advised by leading analyst at present.
Tech giant Nvidia's highly anticipated earnings report for February 26th looms, and one top Wall Street analyst has urged investors to consider buying the stock beforehand. Despite a downward trend in the beginning of the year, Nvidia's shares have long been recognized as one of the best in the world, given the company's leading role in artificial intelligence (AI) technology with its high-performance chips.
The stock, trading under WKN: 918422, has faced uncertainties this year due to concerns over Trump's export restrictions and the AI model of the Chinese startup DeepSeek. However, Mark Lipacis, Evercore's top-tier analyst according to TipRanks, remains upbeat after speaking with leading AI engineers at major hyperscalers.
In a report by TipRanks, Lipacis acknowledged that factors such as DeepSeek's shift towards rival ASICs and delays in the new Blackwell generation have contributed to a negative market sentiment. Yet, Lipacis believes that the shift is more of an evolution than a revolution, which could keep demand for Nvidia chips steady while lower computing costs could boost AI acceptance.
Furthermore, Lipacis emphasized Nvidia's strong software ecosystem and large developer community that gives it a lead over competitors like AMD. Despite delays in the Blackwell chip series until mid-year, demand for Nvidia's GPUs remains robust, with the current H100 series filling short-term gaps until the B100 models are released.
There is a potential risk from significant delays in Blackwell leading to supply shortages in the short term. However, customized AI chips are only seen as a distant threat at present. Lipacis concludes that he expects a positive earnings report on February 26th and maintains his Outperform rating for the stock, with a price target of $190, suggesting a 45% upside potential.
While specific forecasts for a massive price jump after the earnings report are not available, positive earnings reports are typically followed by short-term price increases for Nvidia. Analysts remain optimistic about Nvidia's long-term prospects, specifically due to its central role in the AI revolution.
In the forthcoming earnings report on February 26th, Mark Lipacis, Evercore's top-tier analyst, anticipates a positive outcome and continues to recommend investing in Nvidia's stock due to the company's significant contributions to the AI technology sector, and its potential for reducing computing costs in AI adoption. With a price target of $190, Lipacis believes that this could result in a 45% upside potential, indicating a positive outlook for the stock's performance in the finance world, given the promising future of AI investing in technology.
