![NVIDIA stock target raised at BofA on AI arms race](https://i-invdn-com.investing.com/news/LYNXMPEB440WA_L.jpg)
© Reuters. NVIDIA (NVDA) stock target raised at BofA on AI arms-race
By Senad Karaahmetovic
BofA analysts hiked the price target on Nvidia (NASDAQ:) to $255 per share from the prior $215, citing long-term generative artificial intelligence (AI) potential.
The company is “uniquely” positioned to benefit hugely from the generative AI arms race, which is led by Microsoft (NASDAQ:) and Google (NASDAQ:).
“We have constructed a new model that predicts NVDA’s sales/pf-EPS could grow at a 25%/34% CAGR to >$14/sh by CY27E as adoption of generative AI quadruples the addressable oppty. for AI accelerators,” the analysts explained in a client note.
They also warn that Nvidia stock could trade in a volatile manner in the near term after surging 46% year-to-date (YTD). However, shares could also potentially correct lower if the company offers “a conservative FQ1 data center outlook on cloud capex headwinds/pause ahead of NVDA’s next-gen Hopper H100 ramp ($32K ASP, 1.5x current-gen A100).”
Overall, any pullback is likely to be “short-lived” as investors remain focused on the upcoming March 20-23 GTC conference.
Nvidia stock is BofA’s top compute pick.
Be the first to comment