Nvidia Earnings Preview: Wall Street Stands Firm Despite China's AI Challenger
Ahead of Nvidia's (NVDA) market-moving earnings report, Wall Street remains bullish on the AI leader. Despite concerns raised by DeepSeek's low-cost AI approach, analysts point to continued investments in AI infrastructure by hyperscalers like Amazon (AMZN) and Meta (META).
Valuation Advantage
Nvidia stands out as one of the most attractively valued AI stocks with a forward price-to-earnings (PE) multiple of 32, compared to peers Broadcom (AVGO) and Marvell Technology (MRVL) at 35 and 41 times, respectively.
Analyst Ratings and Price Targets
* HSBC Analyst Ryan Mellor: Reiterated Buy, lowered price target from $185 to $175
* Keybanc Capital Markets Analyst John Vinh: Reiterated Overweight, raised price target from $180 to $190
* Loop Capital Analyst Ananda Baruah: Reiterated Buy, maintained price target at $175
* Bank of America Analyst Vivek Arya: Reiterated Buy, maintained price target at $190
* Evercore ISI Analyst Mark Lipacis: Reiterated Outperform, maintained price target at $190
Key Takeaways
* Hyperscalers continue to invest heavily in AI infrastructure, supporting Nvidia's long-term outlook.
* Nvidia's competitive advantages in platform choice and software ecosystem remain intact.
* Wall Street remains cautious about potential headwinds in the first quarter but expects positive momentum to resume.