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Chip designer NVIDIA Corporation is investment advisory Evercore ISI's cheapest AI stock; the firm shared in a fresh note released earlier today. Evercore kept an Overweight rating and a $190 share price target for NVIDIA and outlined that if the firm reports a small beat along with positive sentiment for its latest Blackwell GPUs, then the stock might experience tailwinds. NVIDIA's shares currently trade for $130 and have been laggards for quite some time as investors remain on the sidelines and evaluate the demand for its products and Blackwell availability.
NVIDIA Share Price Target Kept At $190 By Evercore Along With Overweight Rating
NVIDIA's earnings call for its fiscal fourth quarter is due on Wednesday, with analysts expecting the firm to post $38 billion in revenue and around $0.84 in earnings per share. Year-to-date, NVIDIA's shares have lost 5.81%, while the stock has been flat since mid-August. However, Evercore still rates NVIDIA as Outperform as it opines that the shares could benefit from a small Q4 beat and a Q1 raise coupled with optimism surrounding Blackwell's availability.
Investors have been jittery about NVIDIA's shares ahead of the firm's earnings report. The stock lost 3% on Monday amidst a flurry of negativity which included reports of Microsoft scaling back its data center presence and China's DeepSeek sustaining its AI advances. NVIDIA's shares lost close to $600 billion in market capitalization in January after investors dumped the stock amidst worries of DeepSeek eliminating the need to spend billions of dollars to buy advanced AI GPUs.
In its note, Evercore ISI keeps a $190 share price target on NVIDIA as well as an Overweight rating. The firm notes that ahead of NVIDIA's earnings investors are worried about DeepSeek lowering the demand for AI GPUs, DeepSeek shifting the demand for AI computing to application specific integrated circuits (ASICs) or custom chips and delays with NVIDIA's Blackwell GPUs.
A purported drop in AI computing power requirements demonstrated by DeepSeek has implied to investors that custom AI chips might allow businesses to reduce their AI development costs. Evercore adds that the market is also worried about 'digestion' in the data center industry where firms decide to fully utilize their existing capacity and orders before deciding to procure additional GPUs.
However, the investment advisory firm notes that as NVIDIA's shares are trading at 30 times their forward earnings, the stock is the cheapest in its AI coverage universe. As a result, it concludes that any earnings beat and raise in the upcoming earnings could generate tailwinds for NVIDIA's shares.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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