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On May 28, Bernstein analysts reiterated a positive stance on NVIDIA Corporation (NASDAQ:NVDA) even as the company faces regulatory pressures on its operations in China. The firm maintained an Outperform rating on the stock and a $185 price target.
Bernstein analyst Stacy Rasgon acknowledged NVIDIA’s difficulties in the recent quarter but praised its transparency in addressing them. Despite setbacks, he believes the company has factored in the negative effects in its financial outlook and may still see growth opportunities if it successfully navigates current restrictions. NVIDIA’s 114.2% revenue growth and 75% gross profit margin highlight its strong market position.
Bernstein remains optimistic about NVIDIA’s future, citing the next-gen Blackwell GPU launch and expected improvements in supply chain issues later this year. Demand for computing power is also forecasted to stay strong into 2026, boosting its prospects.
NVIDIA has been open about the challenges in China, earning analyst praise for its transparency. Meanwhile, the semiconductor industry is rapidly evolving, and NVIDIA’s focus on innovation and supply chain management positions it well for future growth.
NVIDIA is a semiconductor company that engineers the most advanced chips, systems, and software for the AI factories of the future. It also develops AI services that help companies create their own AI factories.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.