You know that friend who swore they’d never get an iPhone and then quietly showed up with one six months later? Well, meet DA Davidson – Nvidia’s biggest Wall Street skeptic who just did the financial equivalent of that.
These guys went from predicting a 48% crash in March (ouch) to slapping a “buy” rating on NVDA and calling for 18% upside. That’s like going from “this party sucks” to “actually, can I get the DJ’s number?”
The turnaround is pretty spectacular. DA Davidson just bumped their price target from $195 to $210, which means they think Jensen Huang’s money printer still has plenty of ink left. Their head of tech research, Gil Luria, basically admitted that Nvidia’s AI dominance is too obvious to ignore anymore.
Here’s what changed their minds: Remember when everyone was worried that Big Tech would eventually stop throwing billions at AI chips? Yeah, that’s not happening. If anything, companies are doubling down faster than a Vegas gambler on a hot streak.
The “hyperscalers” (fancy term for mega-tech companies like Google, Microsoft, and Amazon) are still writing checks like they’re Monopoly money. And honestly, why wouldn’t they? AI is basically the new electricity – everyone needs it, and Nvidia makes the best power plants.
But let’s be real – DA Davidson isn’t completely drinking the Kool-Aid. They’re still keeping an eye on some potential party poopers:
- What happens when the AI spending spree eventually slows down?
- Can companies actually make money from all this AI investment, or are we in bubble territory?
- Competition is heating up (though good luck catching Nvidia anytime soon)
- Physical limitations like energy and data center space
- The classic “expectations are getting a bit crazy” concern
The funny thing is, Nvidia is up 32% this year, and analysts are still mostly bullish. It’s like watching a stock that refuses to follow gravity’s rules. At this point, betting against Nvidia feels about as smart as shorting Taylor Swift concert tickets.
Sure, there are risks. There are always risks. But when even the bears are capitulating, it might be time to pay attention. DA Davidson’s flip isn’t just about one firm changing its mind – it’s a signal that the AI revolution might be more real and durable than the skeptics thought.
The bottom line? Sometimes the haters have to admit they were wrong. And in Nvidia’s case, being wrong about a 32% yearly gain probably stings a little more than usual.