DA Davidson’s latest analysis suggests Nvidia’s stock could hit its peak in 2025 but raises concerns about the company’s longer-term prospects.
The firm acknowledges Nvidia’s strong performance over the past year but questions whether it can meet expectations for 2026. Its 2026 forecast is one of the most conservative among analysts, reflecting ongoing skepticism about the company’s ability to sustain its growth.
Since starting coverage of Nvidia in early 2024 with a Neutral rating, DA Davidson has maintained its cautious outlook. It continues to hold a $135 price target, based on a valuation of 35 times earnings. The firm stated, “We remain cautious about Nvidia’s capacity to meet consensus projections for 2026 and beyond,” highlighting potential challenges ahead.
Among these challenges are supply chain issues, including restrictions on sales to China and quality concerns with Nvidia’s Blackwell chips. Interestingly, the firm noted that these supply constraints might extend demand cycles in the short term as customers rush to secure available inventory.
DA Davidson warns that Nvidia’s growth may slow in 2026 due to these supply disruptions and changing market dynamics. For now, investor attention is likely to focus on immediate supply limitations and how the company addresses them. However, long-term growth will depend on whether demand remains strong over time.
While 2025 could still be a high point for Nvidia, DA Davidson’s report emphasizes the uncertainties facing the tech giant in the years ahead.
