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NVIDIA shares highlighted as sector top pick by BofA

Published 02/01/2025, 11:22
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On Thursday, BofA Securities expressed continued confidence in NVIDIA (NASDAQ:NVDA), maintaining a Buy rating and a $190.00 price target. With a market capitalization of $3.29 trillion and analyst targets ranging from $130 to $220, NVIDIA commands strong Wall Street support, reflected in its exceptional analyst consensus rating.

The endorsement comes as the tech industry anticipates the Consumer Electronics Show (CES), set to begin on January 6, where NVIDIA’s CEO is expected to deliver a keynote address among other events.

The firm’s analyst highlighted NVIDIA as their top pick in the sector, anticipating that the CES will serve as a positive catalyst that underscores NVIDIA’s strong position and growth potential in key markets. The company’s impressive 152% year-over-year revenue growth and industry-leading 75.86% gross profit margins support this optimistic outlook.

According to InvestingPro, NVIDIA maintains a perfect Piotroski Score of 9, indicating exceptional financial strength. BofA outlined specific areas of interest, including updates on NVIDIA’s robotics strategy, particularly the Jetson Thor platform, which is expected to advance the ’physical AI’ theme. The launch of RTX 50xx and Blackwell variants for PC gaming, which boast enhanced ’neural rendering’ and faster GDDR7 memory, is also highly anticipated.

Moreover, speculation surrounds NVIDIA’s potential move into the AI PC market, which may be achieved through a partnership or even the introduction of a standalone PC CPU. Additionally, updates on the data center front are eagerly awaited, with current-gen Blackwell (GB200, B300) and the tease of next-gen Rubin (CY26E) that promises more memory for improved AI inference.

The analyst’s comments underscore the significance of the upcoming CES tradeshow for NVIDIA, as it is expected to showcase the company’s advancements and reinforce its leadership in the technology sector. The firm’s reiteration of the Buy rating and price target reflects a positive outlook for NVIDIA’s stock performance.

In other recent news, NVIDIA has seen significant developments.

The Biden administration’s proposed limit on AI chip exports has been challenged by two U.S. senators who fear it could impede the sale of U.S. technology overseas and potentially drive foreign buyers towards Chinese competitors. NVIDIA’s acquisition of Israeli firm Run:ai has been cleared by the European Commission, eliminating a significant regulatory hurdle.

Additionally, NVIDIA has introduced the Jetson Orin Nano, a compact AI computer designed for robotics and on-device AI processing. The company also announced that its GB200 rack-mounted solution requires further supply chain optimization, with mass production expected between Q2 and Q3 of 2025, according to TrendForce.

Citi reaffirmed its positive stance on NVIDIA, maintaining a Buy rating and highlighting the company’s GPU momentum and AI market leadership.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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