Amid the accelerating evolution of artificial intelligence, investment bank DA Davidson, previously bearish on Nvidia, has undergone a significant reversal. In its latest report, DA Davidson upgraded Nvidia's stock rating from "neutral" to "buy" and raised its price target from $195 to $210 per share. Previously, DA Davidson analysts had warned that Nvidia's stock price could plummet by as much as 48%. At the time, DA Davidson believed that spending by hyperscale tech companies could peak in 2026, which could have a significant impact on Nvidia's business. "Our growing optimism about the growth in demand for AI computing has replaced our concerns about Nvidia," Gil Luria, head of technology research at DA Davidson, and his team of analysts wrote in their latest report. Shortly after Nvidia released its earnings report, Luria stated in a note that his view on Nvidia has "evolved considerably" over the past six months due to the rapid development and adoption of AI in the enterprise. Meanwhile, hyperscale spending does not appear to be nearing its peak. “This does mean the most important thing – overwhelming growth in demand for computing power. It’s the only thing that matters,” DA Davidson analysts wrote. “Nvidia should be able to keep growing over the next two years, regardless of where that growth comes from.”