NVIDIA Corporation's stock is experiencing upward momentum as BofA Global Research reaffirms its "Buy" rating, setting a price target of $190. The optimism stems from NVIDIA's strong fundamentals and anticipated modest beats in sales guidance ahead of its FQ4 2025 earnings call. Despite potential challenges such as lower gross margins due to the Blackwell product transition and China restrictions, NVIDIA's robust position in the data center market, with a projected 60% y/y growth in sales for CY25, is a key driver of investor confidence. The company's strategic advantages in software and hardware co-optimization, along with its leadership in AI and robotics, are expected to further bolster its market position.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF, which inversely tracks NVIDIA's performance, has declined 2.54% to $6.91 as of 10:00 AM on Tuesday, February 4.