NVIDIA "The Big Short" Surrenders

Against the backdrop of the accelerating evolution of the artificial intelligence wave, the investment bank DA Davidson, which previously held a bearish view on Nvidia, suddenly underwent a major shift in attitude. In its latest report, DA Davidson noted that it had upgraded Nvidia's stock rating from "neutral" to "buy" and raised its target price from $195 per share to $210 per share. Earlier, DA Davidson analysts had warned that Nvidia's stock price could fall by as much as 48%. At that time, DA Davidson believed that spending by mega-cap tech companies could peak in 2026, which could have a significant impact on Nvidia's business. DA Davidson's technology research director, Gil Luria, and his analyst team wrote in their latest report, "Our increasingly optimistic view on the growth of artificial intelligence computing demand has replaced our concerns about Nvidia." Shortly after Nvidia released its financial report, Luria had stated in a report that there had been a "considerable change" in their view on Nvidia over the past six months due to the rapid development and adoption of artificial intelligence in enterprises. At the same time, mega-scale spending does not appear to have reached its peak yet. "This does indeed signify the most important thing - overwhelming growth in compute demand. That is the only important thing," DA Davidson analysts wrote, "Nvidia should be able to maintain growth in the next two years, regardless of where this growth comes from."