Jan. 16 at 4:48 PM
Nvidia appears to have lost some of its shine as the market’s top AI play, but RBC Capital Markets sees the recent consolidation as a buying opportunity. The firm initiated coverage on Nvidia with an Outperform rating and a
$240 price target, arguing that elevated hyperscaler capex and Nvidia’s technological advantages should reignite momentum.
While Nvidia’s share of the AI accelerator market is expected to decline from about 80% to 70% by 2027 as customers diversify toward ASICs and competing chips from AMD, RBC views the risk as manageable. Strong balance sheets among major cloud players, ongoing competition in AI infrastructure, and sustained investment over the next 12–18 months support demand.
RBC also highlighted Nvidia’s performance leadership, rack-scale expertise, and full-stack ecosystem as key differentiators, with new Rubin systems helping maintain its edge despite rising competition from in-house solutions and rivals.
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