Institutions Are Still Betting Big on Nvidia

Investing

Published: January 28, 2025 2:45 pm

Last Updated: February 3, 2025 6:42 am

Nvidia (NASDAQ:NVDA) is seeing a good deal of institutional interest.

However, this is not surprising following yesterday’s DeepSeek-fueled tech bloodbath.

In fact, over the last few hours, dozens of Nvidia call options have gone by. Most recently, one went through for $1.5 million worth of NVDA June 20, 2025 160 calls. Another one went through for $1.12 million worth of NVDA March 21, 2025 150 calls.

Key Points About This Article

Oversold shares of Nvidia are just starting to pivot higher after gapping lower with yesterday’s DeepSeek-fueled tech bloodbath.
Institutions are jumping on the opportunity to buy Nvidia at a steep discount.
Helping, analysts at Tigress Financial just upgraded the tech giant to a strong buy rating with a $220 price target.
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Once again, that’s not surprising to see. Even better, after gapping from about $145 to $116.25, NVDA caught strong support and is just starting to pivot from over-extensions on relative strength (RSI), MACD and Williams’ %R. Also, from its last traded price of $125.68, we believe NVDA could soon refill its bearish gap at around $145 shortly.

Analysts Just Upgraded Nvidia to a Strong Buy

Even better, analysts at Tigress Financial just upgraded the tech giant to a strong buy rating with a $220 price target.

“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,” said the firm, as quoted by Seeking Alpha.

JPMorgan also reiterated its overweight rating on Nvidia, arguing that “past innovation cycles suggest that efficiency and technology improvements drive further adoption and innovation.”

We also have to consider that Nvidia is a beneficiary of President Trump’s Project Stargate project, which has a goal of building data centers across the U.S., funding research and development for new artificial intelligence applications, and investing up to $500 billion in AI infrastructure by 2029.

Earnings are Expected to Be Strong

When Nvidia reports earnings on February 26, analysts estimate a 64% year-over-year jump in profits, with revenue up 73%. Analysts are also waiting to hear more about the potential impact of China’s DeepSeek on Nvidia chip demand.

In November, Nvidia posted EPS of 81 cents, which beat by six cents. Revenue of $35.08 billion, up 93.6% year over year, beat by $1.95 billion. It also saw quarterly data center revenue of $30.8 billion, which was up 112% year over year.

In short, we’d use weakness as an opportunity to buy Nvidia.

Near-term, we’d like to see the tech giant rally back to $145 a share.

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