Investing.com -- D.A. Davidson has added Nvidia to its Best-of-Breed Bison stock list, citing the chipmaker's dominant position in AI infrastructure, durable competitive advantages and exceptional financial profile as evidence of long-term quality that ranks it among the best companies in the firm's coverage universe.

Analyst Gil Luria said Nvidia passed 10 of 12 qualifying criteria used to screen for inclusion on the list, which requires companies to meet at least eight factors suggesting sustained quality.

The three pillars underpinning the addition were what D.A. Davidson described as an "outstanding business opportunity," an "enduring moat," and "exceptional financials."

On the growth opportunity, D.A. Davidson noted that "NVIDIA operates at the center of a large and rapidly expanding market driven by structural demand for the compute to run artificial intelligence," with management sizing the AI infrastructure opportunity at roughly $3 to $4 trillion by 2030 and citing over $1 trillion in cumulative demand for its next-generation platforms through 2027.

On competitive positioning, the firm believes Nvidia's CUDA software ecosystem combined with continuous product innovation across its Blackwell and Rubin architectures has made it "the default infrastructure layer for hyperscalers, AI labs, and enterprises," creating high switching costs that reinforce its leadership as AI workloads shift from training to inference.

Financially, D.A. Davidson highlighted non-GAAP gross margins of roughly 70% to 75%, operating margins near 60% and free cash flow margins exceeding 40%, which are all well above semiconductor peer averages.

D.A. Davidson reiterated its Buy rating and $300 price target on the stock.