Bank of America (BOFA) repeated both the purchase classification for NVIDIA (NASDAQ: NVDA) and the goal of its share price of $ 180 for the next 12 months, an increase of approximately 27 %.
Fixed confidence, of course, is the result of the dominant position of NVIDIA in the artificial intelligence sector (AI) and is compatible with the total consensus of Wall Street, which determines the target price in the north from $ 176.
Vivek Arya, Bofa stock analyst, pointed to the growth of NVIDIA revenue by 86 % on an annual basis (YOY) as evidence of increased demand and effective operational implementation.
Aria noted that the company was able to address the urgent investor concerns, such as the surrounding of the launch of the NVIDIA RACK Blackwele platform, the sovereign demand for artificial intelligence solutions, and the stopping of shipments to China.
Nvidia stock analysis
Currently, NVIDIA is traded with 30x profits forward and sporting price/profit to growth (PEG) under 1.0X, which is less than an average of 2.4x among its amazing seven peers in NVIDIA.
In fact, ARYA highlighted the NVIDIA product pipeline and its size, noting that the shares are priced in an attractive way despite the maximum of $ 3.46 trillion and the 45.26x price.
Since BlackWell chips have multiplied more than twice the speed of training in the artificial intelligence model, other analysts agree with Bofa. For example, UBS and Citi also maintain a purchase class, which particularly highlights the growth of the NVIDIA networks section, which amounted to $ 5 billion in the last quarter.
Despite the opposite winds I faced with regard to the shipments of H20 chips to China, NVIDIA managed to conclude some major deals in the Middle East. It is worth noting that the company announced a 10 square mile data center project in the United Arab Emirates.
In general, Bofa is still confident of the NVIDIA track, citing the unparalleled NVIDIA performance, controlling the ecosystem, and leading the artificial intelligence market as signs of the company’s ability to fulfill all its promises.
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