Wall Street Zen upgraded NVIDIA from Buy to Strong Buy. The move comes amid robust demand for AI infrastructure, with analysts pointing to continued high spending by major data centers.
On October 10, discussion also focused on NVIDIA’s future profitability and supply chain strategy. Management projects gross margin will bottom out between 71% and 72% in the fourth quarter before recovering. NVIDIA has invested in AI server chip maker d-Matrix to improve technology compatibility. There is also speculation that NVIDIA may use Intel’s advanced packaging technology starting in 2028, diversifying its supply chain beyond its current partners.
Some caution remains. The stock dipped around 0.4% after briefly passing $235. One analyst warned of a potential bull trap unless the price can sustain levels above $240. Concerns also persist about whether the AI spending boom is sustainable over the long term.