Redburn Atlantic analyst Timm Schulze-Melander initiated coverage of the stock this week with a "buy" rating. The analyst set the price target at $178, implying upside of 21% over the current share price of $147 at the time of writing.

Nvidia’s outlook for the January quarter may not wow Wall Street when the company posts earnings next week. But Mizuho analysts see bright prospects for later next year.

The company has regularly impressed the market with earnings ahead of expectations but it might struggle to do so this time.

To that end, Nvidia bears frequently highlight custom AI chips from big technology companies like Amazon ( AMZN 2.48%) and Alphabet ( GOOGL -1.51%) ( GOOG -1.54%) as cause for alarm. While both companies have designed custom silicon for their data centers, recent commentary should put Nvidia investors at ease.