Nvidia shares are ’attractively valued’ says Stifel

Investing.com -- Stifel analysts remain optimistic on Nvidia (NASDAQ: NVDA) ahead of the chipmaker’s fiscal first-quarter earnings report, calling the stock “attractively valued” despite ongoing challenges tied to China restrictions and broader macroeconomic uncertainty.

Nvidia is scheduled to report results on May 28. Stifel expects the company to post “largely in-line results and outlook,” noting that recent restrictions on its H20 AI chips in China have had a negative impact on top-line performance. Still, the firm sees strong momentum ahead.

“Our supply chain discussions continue to point to significant acceleration into 2H,” Stifel wrote, citing Nvidia’s expanding presence in the United Arab Emirates and Saudi Arabia, driven in part by supportive U.S. policy shifts.

These developments are seen as incremental positives alongside broader supply chain strength.

Stifel said it expects the near-term investor focus to remain on three main issues: “(1) hyperscaler demand and sustainability of infrastructure investment, (2) potential incremental impacts related to China export restrictions, and (3) potential margin pressure on early GB200/300 ramps.”

Despite these uncertainties, the firm does not expect any change in Nvidia’s market leadership. “We do not expect any change to NVDA’s leadership positioning in shaping global AI infrastructure,” the analysts said.

The note reiterated confidence in Nvidia’s valuation, emphasizing the company’s strategic role in the AI landscape. “We continue to view shares as attractively valued within the context of that positioning,” Stifel concluded.

The firm maintained a Buy rating and a $180 per share price target on the stock.

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