Analysts Maintain Buy Ratings on Nvidia Amid AI Chip Competition
Wall Street remains bullish on Nvidia despite mounting concerns over valuation and intensifying competition in the AI chip space. The stock faces headwinds from the sector's lofty valuations and rapid advancements by rivals like Broadcom, AMD, and Google's tensor processors. Geopolitical tensions, particularly U.S.-China export restrictions on advanced chips, add another layer of uncertainty.
Bank of America's Vivek Arya reinforced his $275 price target after discussions with Nvidia's investor relations team. Management downplayed competitive threats, asserting their upcoming Blackwell chips—set to power large language models by early 2026—will maintain Nvidia's technological lead. Benchmark tests like MLPerf appear to support these claims, though the market awaits real-world performance data.
