Nvidia (NASDAQ: NVDA) remains a focal point for investors as DA Davidson analyst Gil Luria maintains a ‘Neutral’ rating on the stock with a price target of $135, reflecting a reserved stance amidst ongoing optimism for the chipmaker.
In his latest commentary, Luria revisited the basis of his neutral outlook, which he first issued a year ago.
“We initiated coverage of Nvidia with a Neutral rating and highlighted concerns that placed us among the least bullish on NVDA’s outlook,” he said.
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Reflecting on the past year, Luria noted that many of his initial concerns remain relevant, leading him to continue taking a cautious approach to the stock.
DA Davidson’s Nvidia stock price prediction
The DA Davidson analyst suggested that 2025 may represent a peak year for Nvidia, and his estimates for 2026 remain well below consensus, making his projections among the lowest on Wall Street. He further highlighted that short-term issues such as supply-side disruptions—including limits on sales to China and Blackwell quality concerns—could impact Nvidia’s ability to meet near-term investor expectations.
“With this analysis in mind, we continue to believe 2025 could be a peak year for NVDA and remain street low in 2026. Based on this reflection we remain cautious on NVDA’s ability to meet consensus expectations for CY2026 and beyond. Our CY2025 remains below consensus and CY 2026 estimate is street low. Shorter-term, we expect investors to focus on the supply-side disruptions, namely limits on sales to China as well as Blackwell quality issues.”
While maintaining a $135 price target, Luria emphasized Nvidia’s valuation, noting that the stock trades at a 35x multiple, which he views as reflecting elevated expectations. He also pointed out that supply issues could paradoxically extend Nvidia’s current growth cycle, with demand remaining the key long-term driver for the company’s trajectory.
NVDA technical analysis
On Wednesday, Nvidia’s stock closed at $136.20, up 3.37%, with pre-market trading pointing to further gains at $138.31 (+1.55%).
Over the past month, NVDA has traded in a wide range between $126.86 and $153.13, with the stock currently near the lower end of this band.
Nvidia’s technical setup shows signs of consolidation with reduced volatility, which may indicate a buildup toward a decisive move. Key support is noted below the current price at $135.58, with a broader support zone between $131.60 and $135.58 formed by multiple trend lines across time frames.
Resistance lies just overhead between $136.34 and $139.63, followed by a stronger resistance zone from $147.64 to $149.44.
Luria’s cautious stance serves as a reminder of the potential risks inherent in Nvidia’s high-growth story.
Nvidia continues to present a mixed picture. While the stock has seen immense growth in recent years and retains strong long-term demand prospects, challenges such as geopolitical tensions, supply-side disruptions, and elevated valuations weigh on its short-term outlook.
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