Nvidia Upgraded to Buy by Top Analyst, Says Risks are ‘Priced-In’

Analyst Kinngai Chan of Summit Redstone Partners upgraded Nvidia (NVDA) stock to a “Buy” rating from “Hold,” stating that certain risks are already priced into the stock. The upgrade follows the artificial intelligence (AI) chipmaker’s blockbuster Q1FY26 results published yesterday, surpassing both top and bottom-line expectations. Adjusted earnings per share (EPS) of $0.81 easily beat the consensus of $0.74, while sales of $44.06 billion exceeded expectations of $43.33 billion. NVDA stock is trending up 5.4% in pre-market trading, at the time of writing.

Chan ranks #701 out of the 9,586 analysts tracked on TipRanks. He boasts an impressive success rate of 70% and an average return per rating of 27.40%.

Chan Says Risks Are Factored into the Stock

Risks are Priced In – The five-star analyst upgraded the stock since he believes that risks associated with the double ordering of its Hopper-generation AI GPUs (Graphic Processing Units) and those related to China export controls have now been largely factored into the stock price. Double ordering refers to customers placing duplicate orders for the same chips with multiple distributors or partners to circumvent the limited supply of these chips.  

Datacenter Capex Spending – Chan predicts that datacenter capex spending in the AI model training market will continue to grow rapidly. This sustained increase in demand is expected to benefit Nvidia’s AI GPU and datacenter networking businesses. Conversely, he acknowledged that model inferencing requires lower computing power, which could impact Nvidia in the long term but not in the near-to-medium term.

ODMs Have Overcome Technical Challenges – The research firm’s industry checks indicate that Nvidia’s original design manufacturers (ODMs) have almost fully solved the technical challenges with its Blackwell-generation platform. This could help the company to return to meaningful outperformance in coming months.  

Overall, Chan’s optimism stems from more clarity provided by Nvidia’s robust results and guidance, backed by strong sales growth despite the overhang of China tariffs.

Is Nvidia Still a Good Stock to Buy?

Wall Street remains highly bullish on Nvidia’s long-term stock trajectory despite the company being locked out of the large Chinese market. On TipRanks, NVDA stock commands a Strong Buy consensus rating based on 33 Buys, four Holds, and one Sell rating. Also, the average Nvidia price target of $165.29 implies 22.6% upside potential from current levels.

Please note that these ratings could change once analysts revisit their views on the stock in light of the latest results.

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