NVIDIA's "largest short" surrenders

Against the backdrop of the accelerating evolution of artificial intelligence, the previously bearish investment bank DA Davidson has suddenly made a significant shift in its stance on NVIDIA. In its latest report, DA Davidson upgraded NVIDIA's stock rating from "neutral" to "buy" and raised its target price from $195 per share to $210 per share. Prior to this, DA Davidson analysts had warned that NVIDIA's stock price could plummet by as much as 48%. At that time, DA Davidson believed that spending by mega-cap tech companies might peak in 2026, which could have a significant impact on NVIDIA's business. DA Davidson's head of technology research, Jill Luria, and her analyst team wrote in the latest report, "Our increasingly optimistic view on the growth of AI computing demand has replaced our concerns about NVIDIA." Shortly after NVIDIA released its earnings report, Luria stated in a report that the view on NVIDIA had "changed quite a bit" over the past six months due to the rapid development and adoption of AI in enterprises. Meanwhile, the massive spending does not seem to be nearing its peak. "This indeed means the most important thing—an overwhelming growth in demand for computing power. This is the only important thing," DA Davidson analysts wrote, "NVIDIA should be able to maintain growth over the next two years, regardless of where that growth comes from."