Nvidia (NASDAQ:NVDA) could be gearing up for a strong post-earnings rally, according to Lynx Equity, which has lifted its price target on the chipmaker from $140 to $160. The firm suggests that muted market expectations may be underestimating Nvidia’s potential.
“After a couple of quarters of inline results, we think NVDA has the potential to provide upside to muted investor expectations,” Lynx wrote in a recent analyst note.
Previously cautious about issues like thermal challenges with the GB300 GPU and exposure to trade tariffs, Lynx now believes these concerns have been largely accounted for in the stock’s valuation. The firm said Nvidia has shown resilience in the face of multiple hurdles, including delayed product launches, geopolitical headwinds, and capacity limitations.
Analysts are now encouraged by Nvidia’s operational progress and future growth initiatives. “GB200 has overcome its teething issues,” the note stated, referencing accelerated production at manufacturing partner Foxconn (USOTC:FXCOF) and Nvidia’s investment in a $500 million manufacturing facility in Texas. Additionally, increased CoWoS capacity at TSMC is seen as a sign of improving supply chain health.
Lynx also sees long-term promise in Nvidia’s partnership with MediaTek, which gives the company a “stealth entry” into Edge AI markets. The firm views this collaboration as a major strategic opportunity, particularly within automotive systems and enterprise solutions.
Trade concerns, once a key overhang, are now seen as minimal. “NVDA has in place a carefully crafted strategy to avoid nearly all tariffs,” Lynx said, citing exemptions secured from the U.S. Commerce Department and the company’s diversified global manufacturing network.
The note also pointed to several large-scale drivers of potential future revenue, including the $500 billion Stargate project and increased capital flowing to AI infrastructure players such as OpenAI and CoreWeave.
“NVDA is on the verge of breaking out of the range and is headed for new highs,” Lynx concluded, reaffirming its bullish view ahead of Nvidia’s earnings report.