Nvidia Stock Just Got a New $180 Price Target—Here's Why a DBS Top Analyst Is Still Bullish
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It is worth noting that Fang Boon Foo ranks 470 out of more than 9,800 analysts tracked by TipRanks. He has a success rate of 75%, with an average return per rating of 38.50% over a one-year timeframe.
Why Top Analyst Remains Bullish on Nvidia
Foo has outlined several reasons for staying positive on Nvidia's outlook. Here's a quick look at what's driving his bullish view:
Strong AI Demand despite China Risks: The analyst said Nvidia continues to benefit from strong global demand for its AI chips. For Q2 FY26, the company guided revenue of $45 billion, up 2% sequentially, and said that demand for both Hopper and Blackwell chips is expected to exceed supply throughout the year.
While U.S. export rules are still a risk, especially for H20 chip sales to China, DBS believes the impact will be limited. The report also mentioned that Nvidia is working on a compliant China-specific chip to help reduce the impact of these limits.
Annual Chip Upgrades Help Nvidia Stay Ahead: DBS pointed to Nvidia's yearly refresh cycle for its AI accelerators as a key competitive edge. With planned upgrades from Hopper to Blackwell and later Rubin, the company's steady product rollout—outlined at its GTC conference—is expected to keep it ahead of rivals in the fast-moving AI market.
Margins Expected to Stabilize: The analyst noted that gross margins may dip slightly in the near term as Nvidia ramps up its Blackwell chips, but management expects margins to recover to the mid-70% range in FY26. He also pointed to Nvidia's solid cash position and strong free cash flow, which gives it enough room to invest and manage risks better than most peers.
Nvidia's High Valuation Is Justified
The analyst raised his price target on Nvidia to $180, based on a 22x forward price-to-book ratio for FY26/27, slightly above the company's historical average. However, Foo believes NVDA's premium is justified. He pointed to Nvidia's strong market position, steady performance, and high return on equity—expected to reach 79%.
Is Nvidia a Good Stock to Buy?
According to TipRanks, NVDA stock has received a Strong Buy consensus rating, with 36 Buys, four Holds, and one Sell assigned in the last three months. The average Nvidia stock price target is $176.76, suggesting a potential upside of 7.18% from the current level.
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