Nvidia shares have seen a notable increase of about 2% in premarket trading, driven by a strong quarterly performance and an optimistic guidance update. This rise has helped to alleviate concerns surrounding its DeepSeek and Blackwell initiatives.

The stock is currently valued at $165 per share, which is an improvement from its January 24 close of approximately $142, prior to the DeepSeek issues. Several analysts have raised their price targets for Nvidia, with the highest set at $200 per share. However, some analysts maintain a cautious perspective, suggesting that while they continue to recommend buying the stock, it may remain within a limited range in the near future.

Despite being viewed as an expensive stock, Nvidia’s valuation could appear more attractive in retrospect. There is a consensus on the necessity for advancements in AI technology, as current versions are still seen as basic and require greater computing power for enhanced reasoning capabilities. While the recent quarter showed strong results, there are lingering doubts about Nvidia’s long-term potential.

📎 Related coverage from: cnbc.com