I Spy Another Outperform Quarter Before Panic Kicks In — Upgrading Nvidia To Buy

Summary:

• We’re upgrading Nvidia Corporation to a buy as we expect the Blackwell ramp to drive outperformance in the last quarter of FY25.
• We believe Wall Street’s AI darlings’ risks are now well understood, i.e., the stock is no longer all rainbows and butterflies; reality has been priced in for now.
• We spy teething overheating issues and higher competition with in-house ASIC as it comes to fruition, but we don’t see these weighing on the current quarter.
• In our opinion, investors should act now as Nvidia is poised to beat and raise guidance in 4QFY25, capitalizing on hyper demand for Blackwell GPUs.

We’re putting Nvidia Corporation (NASDAQ:NVDA) back on the market as a buy. We believe Wall Street’s AI darlings’ risks are now well understood, i.e., the stock is no longer all rainbows and butterflies; reality has been priced in

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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