Tigress Financial Partners Upgrades NVIDIA to Strong Buy, $220 Price Target

Tigress Financial Partners analyst Ivan Feinseth upgraded NVIDIA (NASDAQ: NVDA) from Buy to Strong Buy with a price target of $220.

“We upgrade our investment rating from Buy to Strong Buy and increase our 12-month target price to $220 as NVDA continues to be a core holding in the powerful AI investing theme and the industry-leading beneficiary of the significant capital investment in AI development driving the ongoing acceleration of AI adoption across all industries and enterprises, which will continue to drive significant revenue and cash flow growth and greater shareholder value creation and view yesterday’s selloff as a major buying opportunity.

NVDA shares had their largest one-day decline since March 2020, losing over 17% on the day and pulling back to their lowest level since early October of last year following yesterday’s news that Chinese AI startup DeepSeek announced its R1 AI model with reasoning capabilities similar to OpenAI at a lower development and operating cost, calling into question the need and impact for the expected hundreds of billions of dollars in current and future data center and AI application development.

DeepSeek’s models were trained on less advanced NVDA chips, leading to a significant drop in NVDA’s stock value.

However, the actual capabilities of DeepSeek’s R1 AI model are unknown, and there are tremendous concerns about security.

Most importantly, AI and the data centers they run on will be a multiyear ongoing investment in buildout and development.

NVDA will be a key beneficiary as it continues to be the number one supplier of AI-driving GPUs and introduces more advanced and more powerful GPUs, including its current Blackwell line of processors and the upcoming Vera Rubin combination CPU/GPU processors.

Expectations for aggregate AI-driven and data center development capital investment should exceed $330 billion this year, from just under $250 billion in 2024 to over $400 billion next year.

NVDA highlighted multiple new product launches at CES 2025 in Las Vegas earlier this month.

CEO Jensen Huang gave a keynote speech highlighting the evolution of AI from the virtual into the physical world.

In November, NVDA reported another quarter of strong results, with Q3 2025 revenue increased by an incredibly strong 94% Y/Y to a record $35.1 billion as the demand for its industry-leading AI-enabling GPUs remains incredibly strong, and it continues to support the powerful AI-driven investment theme.

NVDA is well-positioned to benefit from emerging generative AI applications, which are used to create interactive texts, images, and video content, along with large gains in productivity across a broad spectrum of new and existing applications.

NVDA’s leadership position in visual data processing, the acceleration of AI and deep learning opportunities, and ongoing Data Center adoption will continue to drive greater Return on Capital, increasing Economic Profit, and greater shareholder value creation.

We believe further upside in the shares exists, and our 12-month target price of $220 represents a potential return of over 85% from current levels.”

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