Nvidia may be poised for additional gains following a strong first-quarter earnings report, according to Daiwa Capital Markets, CNBC reports.
The firm raised its price target on the semiconductor giant from $115 to $165 per share, signaling an expected upside of about 16% from the stock’s closing price on Wednesday. Daiwa also reiterated its “outperform” rating on Nvidia.
In a research note published Wednesday, analyst Louis Miscioscia described Nvidia as “back in the driver’s seat,” citing solid quarterly performance and multiple growth catalysts. Among them is sustained demand for AI inference computing from major technology companies including Microsoft, OpenAI, and Google, suggesting ongoing appetite for Nvidia’s chips.
“We are back in a rally phase given good quarterly growth and the same expectation for 2025,” Miscioscia wrote.
He highlighted comments from CEO Jensen Huang, who emphasized accelerating AI demand and future expansion opportunities. More details are expected at Nvidia’s upcoming GTC conference in Paris, set to begin on June 11.
Miscioscia also pointed to positive momentum in the ramp-up of Nvidia’s Blackwell chips, the company’s latest line of AI-focused processors. He anticipates gross margins will return to the mid-70% range later this year, underscoring the potential for profitability alongside growth.
Despite gaining about 6% year-to-date in 2025, Nvidia’s stock has faced intermittent pressure due to external factors such as US tariffs and the emergence of new competitors like DeepSeek. Nonetheless, analyst sentiment remains largely positive. Of the 65 analysts tracked by LSEG, 59 rate Nvidia as a buy or strong buy. The average price target implies an upside of nearly 23%.
Daiwa’s view reflects broader optimism that artificial intelligence remains a powerful long-term growth engine for the company.
“Our conclusion remains that AI is a huge tech trend—bigger than world-changing events like the PC, smartphone, and Internet,” Miscioscia said. “Thus, there is more to come.”
