Nvidia stock prediction: Unclear if chipmaker will grow in 2026, analyst says
Mar 19, 2025 - businessinsider.com
Nvidia may face significant growth challenges in the coming years, according to analyst Gil Luria from DA Davidson. He suggests that the demand for Nvidia's GPUs might level off, particularly in 2026, potentially halting the company's growth. Luria maintains a "neutral" rating with a $135 price target for Nvidia, but in his bear case, he predicts a 48% drop in stock value to $60 if hyperscalers like Microsoft and Amazon reduce AI spending and Nvidia struggles to attract new customers. Challenges include maintaining demand in China amid economic slowdowns and restrictions, and the need for smaller customers to secure capital for chip purchases.
Despite Nvidia's advancements, such as the new Vera Rubin chip, the stock is down 16% year-to-date, reflecting investor skepticism about its growth trajectory. Luria highlights the difficulty of sustaining rapid growth rates and notes that while Nvidia's products are competitive, they must translate into continued growth to satisfy investors. His price target suggests a 16% upside, balancing his bear and bull cases. In the bull scenario, if Nvidia meets earnings expectations, the stock could rise 38% to $160.
Key takeaways:
Nvidia may face a growth roadblock in 2026 if GPU demand declines, according to analyst Gil Luria.
Luria maintains a "neutral" rating with a $135 price target but warns of a potential 48% stock drop in a bear case scenario.
Challenges include potential demand stabilization from major customers like Microsoft and Amazon, and economic issues in China.
Luria's bull case sees Nvidia meeting earnings expectations, potentially increasing the stock by 38% to $160 a share.
