Nvidia Faces Challenges But Remains Bullish
Nvidia's (NVDA) performance in the early months of 2023 has been atypical, with shares declining by 1% compared to gains in major US indexes.
Factors Contributing to Weakness
Evercore ISI analyst Mark Lipacis cites three reasons:
* DeepSeek's AI model reducing overall AI demand
* Shift from Nvidia GPUs to custom chips for AI compute cycles
* Delays in Blackwell chip production
Analysts Remain Optimistic
Despite these concerns, analysts remain bullish on Nvidia. Lipacis maintains an Outperform rating and a $190 price target. He emphasizes Nvidia's strong software ecosystem and development community as a competitive advantage.
Competition and Advancements
DeepSeek's AI model and Amazon's partnership with Anthropic have raised concerns about Nvidia's market share. Additionally, Broadcom and Marvell have introduced advanced custom chips.
Bank of America's Top Pick
Bank of America's Vivek Arya reiterates Nvidia as his top pick for 2025. Arya believes the company's earnings call can restore investor confidence by allaying concerns about Blackwell execution, projecting growth in data center sales, and showcasing upcoming advancements at the GTC Conference.
Analysts' Revisions
Financial estimates for Nvidia indicate optimism. Yahoo Finance data shows five upward revisions to 2025 earnings estimates and seven upward revisions to 2026 EPS estimates in the past 30 days.