Nvidia Bulls Defend Stock Ahead of Earnings Despite AI Cost Concerns

Analysts remain optimistic about Nvidia (NVDA) despite challenges related to AI costs. Loop Capital's Ananda Baruah maintains a $175 price target, citing long-term growth potential in accelerated computing and generative AI.

However, some concerns exist about Nvidia's first-quarter outlook. BofA's Vivek Arya anticipates headwinds due to product transitions and market restrictions.

Despite the mixed sentiment, the Street continues to support Nvidia before its earnings report on February 26. Arya's aggressive $190 price target reflects anticipated growth in robotics and quantum technologies.

Caution prevails as analysts note a downward trend in Nvidia's first-quarter EPS estimates and a lack of upward revisions in 2025 EPS estimates.