Nvidia Bulls Maintain Optimism Ahead of Earnings Report, Despite Cautions

Despite challenges posed by DeepSeek's AI cost-effective model, analysts remain largely upbeat on Nvidia (NVDA).

Long-Term Outlook Remains Promising

Loop Capital analyst Ananda Baruah reiterates a $175 price target for Nvidia, citing strong growth potential in accelerated compute and generative AI.

Baruah estimates Nvidia's GPU shipments could reach 10-12 million units in coming years as hyperscalers increase their non-CPU compute usage.

Near-Term Concerns Surface

However, some analysts express caution, citing factors such as:

* DeepSeek's disruption to AI demand and shift to ASICs
* Blackwell chip delays
* China's restrictions

Street View Remains Cautious

Analysts anticipate a modest fourth-quarter beat but voice concerns about the first quarter outlook due to the abovementioned headwinds.

Price Targets and EPS Expectations

* Evercore analyst Mark Lipacis maintains a cautious view due to the factors mentioned above.
* BofA analyst Vivek Arya sets a more aggressive price target of $190, citing Nvidia's new product pipeline and market expansion.
* Yahoo Finance data shows a modest decline in Nvidia's first-quarter EPS trend in recent weeks.
* The Street's 2025 EPS estimates for Nvidia have remained stable over the past two months.