Analyst Ratings February 24, 2026

D.A. Davidson Keeps Buy on Nvidia, Sees Share Price Priced for a 2026 AI Peak

Firm holds $250 price target as market reallocates to other AI winners and Nvidia prepares fiscal fourth-quarter results

By Ajmal Hussain NVDA
D.A. Davidson Keeps Buy on Nvidia, Sees Share Price Priced for a 2026 AI Peak
NVDA

D.A. Davidson has reaffirmed its Buy rating and a $250.00 price target on Nvidia (NASDAQ:NVDA), arguing the stock remains attractive despite recent market rotation toward other AI beneficiaries. The firm says Nvidia’s current share price appears to be discounting a 2026 peak in AI demand, even as the company posts strong revenue growth and a low PEG ratio.

Key Points

  • D.A. Davidson reiterates Buy rating and $250.00 price target on Nvidia (NASDAQ:NVDA), above the stock's current price of $191.55.
  • Nvidia shows 65% revenue growth and trades at a PEG ratio of 0.79; analyst targets across the market range from $140 to $352.
  • The market has diversified toward other AI winners - cloud, Broadcom, memory chips and optical firms - while D.A. Davidson believes Nvidia's share price is priced for a 2026 peak in AI demand.

D.A. Davidson reiterated a Buy rating for Nvidia Corporation (NASDAQ:NVDA), keeping its price target unchanged at $250.00 - a level set above the stock's recent trading price of $191.55. The firm points to valuation signals that suggest the chipmaker remains compelling, with analyst targets spanning from $140 to $352 in the broader market assessment.

The research note highlights two valuation and growth indicators. First, a Fair Value analysis continues to place Nvidia in a zone some market participants view as undervalued. Second, the company reported 65% revenue growth and is trading at a PEG ratio of 0.79 - figures the firm cites as evidence of strong fundamentals paired with an attractive growth-adjusted valuation.

D.A. Davidson also flagged a shifting market context ahead of Nvidia’s fiscal fourth-quarter earnings report, scheduled to be released on Wednesday after the close. For the first time in several years, the firm observed, Nvidia may not act as the same broad market bellwether it once did, as investor flows have chased a wider set of AI beneficiaries.

Indeed, the market has already allocated capital to a range of AI winners beyond Nvidia - including major cloud players, infrastructure chipmakers, memory-chip manufacturers and optical equipment companies. According to D.A. Davidson, that dispersion of investor interest creates an opening: while some peers’ valuations appear to embed expectations for a multi-year AI cycle, the firm believes Nvidia’s current share price already reflects a peak in AI demand by 2026.

The rating and $250.00 target were left unchanged from the firm's prior view. Investors seeking additional detail on Nvidia’s valuation and growth outlook are directed to the firm’s longer-form Pro Research Report, which is offered for this company and more than 1,400 other US equities.


Other broker commentary and estimates circulating ahead of Nvidia’s results reinforce the idea of continued robust demand. Truist Securities projects Nvidia’s fiscal fourth-quarter revenue at $66.07 billion, a 67% increase year-over-year, and expects diluted earnings per share of $1.53. Truist’s outlook extends into the fiscal first quarter, where the firm models revenue of $72.7 billion - a 60% year-over-year gain.

Cantor Fitzgerald reiterated an Overweight rating on the company, pointing to strong AI demand and forecasting potential earnings per share of $9.00 and $12.00 for fiscal years 2026 and 2027, respectively. Morgan Stanley likewise maintains an Overweight stance and expressed high confidence in Nvidia’s full-year outlook.

Market technicians and institutional flow watchers have also flagged momentum. Raymond James noted that Nvidia’s shares were exhibiting signs consistent with a potential short-term rally, citing positive price momentum and rising buying pressure from institutional investors.

Regulatory conversation is another element to monitor. Jefferies called attention to growing public concern over artificial intelligence in the United States, which the firm said could prompt heightened state-level regulatory activity - a trend it linked to the introduction of more than 1,200 AI-related bills in 2025. These regulatory dynamics add another dimension to Nvidia’s positioning as the company navigates both market demand and an evolving policy environment.

Taken together, the array of analyst ratings, earnings models and regulatory observations underline Nvidia’s central role in the technology landscape as investors weigh growth prospects, near-term earnings and longer-term demand cycles for AI-related compute.

Risks

  • Near-term earnings outcomes - Nvidia is due to report fiscal fourth-quarter results, and actual results may differ from the forecasts cited by brokers, impacting the stock and semiconductor sector.
  • Regulatory uncertainty - growing public concern about AI could spur additional state-level regulations in the United States, affecting companies across the AI hardware and software stack.
  • Market rotation - investor preference shifting to other AI beneficiaries (cloud providers, memory and optical companies) may change relative valuation dynamics within the semiconductor and broader technology sectors.

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