- The firm assigned a $250 price target and suggested the upcoming report might not carry the market-moving weight it once did.
- The firm suggested that investors diversify their attention across multiple AI-focused firms.
- JPMorgan has reaffirmed its “Overweight” rating for Nvidia, projecting that the company will exceed expectations when it reports results.
Nvidia Corp. (NVDA) received bullish recommendations from DA Davidson and JPMorgan ahead of its fourth-quarter (Q4) earnings, scheduled on Wednesday.
DA Davidson has assigned a $250 price target and suggested the upcoming report might not carry the market-moving weight it once did, as investors have diversified their attention across multiple AI-focused firms, according to TheFly.
According to the firm, companies such as Alphabet (GOOG, GOOGL), Broadcom (AVGO), memory chip makers, and optical technology firms are increasingly capturing investor attention, reflecting broader optimism about AI developments.
The firm noted that while these peers’ stock prices already factor in a multi-year AI expansion, Nvidia’s current valuation primarily anticipates peak AI demand in 2026, presenting a potential opportunity for investors.
Analysts expect Nvidia to report Q4 revenue of $66.12 billion, a 68% year-on-year (YoY) increase, and earnings per share (EPS) of $1.53, a 80% YoY increase, according to Fiscal AI data.
Nvidia stock inched 0.6% higher on Monday mid-morning. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘normal’ message volume levels.
According to a CNBC report, JPMorgan has reaffirmed its “Overweight” rating for Nvidia, projecting that the company will exceed expectations when it reports results. The firm highlighted that despite the positive developments since the previous quarter, Nvidia’s stock has shown limited movement, reflecting heightened market expectations entering the Q4 reporting period.
Citrini’s Outlook To 2028
Citrini Research, a firm specializing in thematic equity strategies, has issued a cautionary report on the rapid expansion of artificial intelligence (AI) in the economy. The research suggests that while AI continues to drive corporate spending and market enthusiasm, its long-term effects may ultimately harm both investors and the average American worker.
Unlike typical bearish AI analyses that focus on infrastructure challenges, Citrini envisions a future where AI advances relentlessly but undermines economic stability by displacing white-collar jobs and reducing consumer spending power.
However, acceleration in AI, as noted in the research, could benefit Nvidia, as it is one of the biggest enablers of AI infrastructure.
NVDA stock has gained over 46% in the last 12 months.
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