Prominent Wall Street analyst Gil Luria of D.A. Davidson has reversed his long-standing bearish stance on Nvidia stock (NVDA), issuing a buy rating and a price target of $300. Luria, previously known for his cautious ‘hold’ or ‘sell’ recommendations, cited Nvidia’s foresight in securing exclusive long-term supply agreements for advanced components as a key factor. This shift suggests a significant change in perception of the GPU maker’s market position and future prospects.
Gil Luria, the Managing Director and Head of Technology Research at D.A. Davidson, has made a notable reversal on Nvidia stock. The analyst, historically one of the company’s most outspoken bears, now rates NVDA as a ‘buy’. He predicts the stock could reach $300, representing a potential 33% increase from recent levels.
Luria’s analysis points to critical shortages in advanced packaging and high-bandwidth memory within the semiconductor industry. He stated that “Nvidia understood the demand patterns first, which is why it is adapting to memory shortages.” The company secured exclusive long-term supply agreements with memory suppliers like SK Hynix and Micron, including advance payments.
This strategic positioning has placed Nvidia ahead of its competitors, according to the analyst’s client note. The stock opened near $225 following a month where it gained over 13%. Luria’s new bullish outlook marks a dramatic shift from his previous warnings about cooling capital expenditure in the GPU sector.
