BofA Securities maintains buy rating on NVIDIA stock, $180 target

On Thursday, BofA Securities analysts reiterated their Buy rating and $180 price target for NVIDIA (NASDAQ: NVDA) stock, aligning with the broader Wall Street consensus of "Strong Buy" (1.44 rating on InvestingPro). The analysts expressed a positive outlook following an investor dinner with NVIDIA’s CFO Colette Kress and VP of Investor Relations Toshiya Hari, as well as a keynote session with Ian Buck, VP/GM of Hyperscale and HPC Computing in San Francisco.

The analysts highlighted the strong demand and growing customer interest in NVIDIA’s cloud and enterprise offerings, now bolstered by a full-scale supply ramp. This momentum is reflected in the company’s impressive 86% year-over-year revenue growth. They noted that NVIDIA addressed three key investor concerns: the execution of the Blackwell rack ramp, AI diffusion and sovereign demand, and China AI shipments.

BofA Securities emphasized NVIDIA’s advantageous position in the AI sector, citing its multi-year lead in performance, pipeline, incumbency, scale, and developer support. With a current P/E ratio of 45.26x and a market capitalization of $3.46 trillion, they view the forward price-to-earnings ratio as attractive compared to the historical five-year median. InvestingPro analysis reveals 20+ additional key metrics and insights available for deeper valuation analysis.

The analysts underscored NVIDIA’s potential to benefit from the ongoing AI trend, maintaining their view of the company as a top sector pick. They reiterated their confidence in the company’s prospects amid the evolving AI landscape, supported by its excellent financial health score on InvestingPro.

In other recent news, Nvidia (NASDAQ:NVDA)’s latest chips have demonstrated significant advancements in training large artificial intelligence systems, according to data released by MLCommons. The nonprofit organization highlighted that Nvidia’s new Blackwell chips are more than twice as fast as the previous generation, completing training tests with fewer chips in less time. This development underscores Nvidia’s competitive edge in AI system training, where efficiency and speed are crucial. Additionally, UBS analysts have maintained their Buy rating on Nvidia, citing the company’s insight into substantial AI infrastructure projects, which could present a revenue opportunity of at least $1 trillion. Citi analysts also reiterated their Buy rating, emphasizing Nvidia’s focus on AI networking and noting a 64% growth in its networking segment, reaching $5 billion in recent results. Meanwhile, Bank of America forecasts robust growth in the semiconductor industry, with AI infrastructure companies like Nvidia poised for significant investment. Lastly, Nvidia was among the ’Magnificent Seven’ stocks that saw a slight decline in premarket trading amid global trade tensions, reflecting broader market sentiments.

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