UBS Calls NVIDIA (NVDA) a Buy as AI Growth Story Holds Steady

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Investors Are Watching Closely. On August 28, UBS analyst Timothy Arcuri reiterated a Buy rating and $205.00 price target on the stock. The firm is only minimally making changes to its estimates and no changes to its price target and buy rating.

The firm acknowledged that Nvidia’s guidance may have fallen short of some investor’s expectations, but commentary suggests a potential upside of $2-5 billion per quarter pending clarification on the mechanics around the 15% fee for licenses to ship H20 chips back to China.

This may offset investor concerns related to guidance.

“There was some noise and a few things to pick at, but against the stock having been up >30% since last earnings, we think the company threaded the needle pretty well in terms of guidance & commentary and we are making only very minimal changes to estimates and no change to our $205 PT and Buy rating."

"Yes, guidance was maybe a touch below some investor’s expectations, but commentary also suggested that there could be a $2-5B/Q upside relief valve pending codification of the mechanics around the 15% fee for the license to ship H20 back into China. In addition to the China situation, the GB200/300 rack transition is still also creating some remnant noise as Blackwell revenue grew much less than expected and balance sheet inventory (particularly finished goods) spiked higher.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.