Nvidia Upgraded by Former Bear on 'Overwhelming' AI Demand
DA Davidson reverses its neutral stance, setting a $210 price target and calling the chipmaker the 'least expensive' direct play on artificial intelligence.
Nvidia (NVDA) shares received a vote of confidence from a prominent Wall Street skeptic, as DA Davidson analyst Gil Luria . Reversing a cautious stance held since early 2024, Luria set a new price target of $210, citing a powerful and sustained trend in artificial intelligence that overrides previous concerns about a potential slowdown in chip demand.
The analyst's upgraded thesis hinges on a single, dominant factor: the relentless expansion of AI. "The overwhelming growth in demand for compute is the only thing that matters," Luria stated, emphasizing that this powerful tailwind is expected to fuel Nvidia's growth well into the next year and beyond. This marks a significant shift from his prior concerns about risks like hyperscaler capital spending and competition from custom-built chips by major tech firms.
From a valuation perspective, Luria now views Nvidia as a compelling investment. Despite a significant rally year-to-date, he argued the stock is "" at its current multiple of roughly 28 times fiscal 2026 earnings. The firm's analysis contrasted this with Apple, which DA Davidson downgraded, noting that both companies trade at similar multiples while Nvidia is projected to grow profits at a much faster rate of around 40%.
While DA Davidson's report including volatility in China and supply chain constraints, the firm's conviction is that the sheer scale of AI compute demand will overshadow these issues. The upgrade suggests that investors will likely focus on the bigger picture of AI-driven growth, solidifying Nvidia's central position in the ongoing technological revolution.