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Nvidia Corporation has recently stumbled, underperforming the S&P 500 by 9% in the past month, as concerns mount over competition and production delays. Analysts from Evercore ISI suggest that this downturn presents a notable buying opportunity ahead of Nvidia's February 26 earnings call. They attribute investor jitters to the emergence of China's DeepSeek in the AI sector, potential competition from application-specific integrated circuits (ASICs), and delays related to Nvidia's next-gen Blackwell chips.
Despite these challenges, Evercore maintains a bullish outlook, placing Nvidia on its Tactical Outperform list with a price target of $190. They argue that the advantages brought by DeepSeek may foster growth in demand for AI applications rather than stifle it. Additionally, Nvidia's robust software offerings, such as NIMS and NeMo, are highlighted as critical for its competitive edge over rivals like AMD and AWS. Even with a projected mid-2025 release for Blackwell, demand for Nvidia's existing H100 chips remains strong, thereby reinforcing its market position.