Counterpoint Research says Nvidia Corp (NASDAQ:NVDA) is redesigning how AI systems run by pairing specialized chips for different tasks, moving beyond a graphics processing unit (GPU)-only approach.
Shift Toward Task-Specific Chips
Nvidia is assigning different parts of AI workloads to different chips rather than relying solely on GPUs, analyst Brady Wang noted on Tuesday. It uses Language Processing Units (LPUs) specifically for generating outputs, while GPUs continue handling earlier processing steps, the firm said. This approach reflects a broader move toward splitting workloads across specialized hardware to improve efficiency.
Faster Output For Large AI Models
Counterpoint says Nvidia is targeting demanding AI use cases, especially large models with over 100 billion parameters, where speed and response quality matter most. By separating tasks across GPUs and LPUs, the system improves the speed at which it generates outputs, particularly for long, multi-step interactions.
Long-Term Push To Lower Costs And Expand
Nvidia plans to start with high-end AI workloads and gradually expand into mid-range markets as costs decline. Counterpoint notes that this phased strategy allows Nvidia to first focus on premium applications before scaling adoption more broadly over time.
Technical Analysis
Nvidia is holding in the upper half of its 52-week range, sitting below the $212.19 high but well above the $95.04 low, which suggests buyers still control the bigger picture. The stock is trading 8.7% above its 20-day simple moving average (SMA) and 5.7% above its 100-day SMA, a setup that points to strength in both the short- and intermediate-term trends.
The moving average convergence divergence (MACD), a trend/momentum indicator, is bullish with the MACD line above the signal line and a positive histogram, consistent with upside momentum remaining in place. When MACD stays above its signal line, it usually means pullbacks are getting bought faster than they’re sold.
Over the last 12 months, the stock has risen 74.46%, which aligns with a longer-term uptrend that has rewarded staying with the trend. The golden cross that formed in June 2025 (50-day SMA above the 200-day SMA) still matters because it often acts as a “trend permission slip” for longer-duration buyers.
- Key Resistance: $197.50 — a nearby ceiling where rallies have recently stalled.
- Key Support: $164.50 — an area where buyers have tended to step in.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the May 27, 2026 (estimated) earnings report.
- EPS Estimate: $1.75 (Up from 96 cents YoY)
- Revenue Estimate: $78.72 Billion (Up from $44.06 Billion YoY)
- Valuation: P/E of 38.6x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $281.04. Recent analyst moves include:
- Benchmark: Buy (Maintains Target to $250.0000) (March 31)
- Rosenblatt: Buy (Maintains Target to $325.00) (March 23)
- Cantor Fitzgerald: Overweight (Maintains Target to $300.00) (March 23)
Top ETF Exposure
- iShares Paris-Aligned Climate Optimized MSCI USA ETF (NASDAQ:PABU): 9.98% Weight
- Amplify CWP Growth & Income ETF (NYSE:QDVO): 9.73% Weight
- REX AI Equity Premium Income ETF (NASDAQ:AIPI): 9.97% Weight
Significance: Because NVDA carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Price Action
NVDA Stock Price Activity: Nvidia shares were up 1.81% at $192.73 at the time of publication on Tuesday, according to Benzinga Pro data.
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