BofA retains NVIDIA stock Buy rating on growth opportunities

EditorNatashya Angelica
Published 2025-01-06, 10:04 a/m
© Reuters
NVDA
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Monday saw BofA Securities reiterating a Buy rating and a $190.00 price target for NVIDIA stock (NASDAQ:NVDA), as the Consumer Electronics Show (CES) commenced. This aligns with the broader Wall Street sentiment, as NVIDIA maintains a strong 1.31 analyst consensus rating, with price targets ranging from $130 to $220.

BofA's analyst highlighted the event as a potential positive catalyst for NVIDIA, emphasizing the company's continued dominance and growth opportunities in burgeoning markets. The semiconductor giant, now valued at $3.65 trillion, has demonstrated remarkable growth with revenue surging 152% year-over-year.

According to InvestingPro, NVIDIA boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. Subscribers can access 20+ additional ProTips and comprehensive financial metrics in NVIDIA's Pro Research Report.

The CES, which started on January 6, features NVIDIA's CEO presenting in a keynote among other events. BofA anticipates updates on several fronts from NVIDIA, including their robotics strategy with Jetson Thor, which spans from silicon to software, and the concept of "physical AI." Moreover, expectations are set for the launch of new RTX (NYSE:RTX) 50xx and Blackwell variants of PC gaming cards, which are said to boast enhanced "neural rendering" and faster GDDR7 memory.

The analyst from BofA also forecasts NVIDIA's potential move into the AI PC market, possibly through a partnership or a small chance of unveiling a standalone PC CPU.

Furthermore, updates are expected regarding NVIDIA's data center offerings, including the current-gen Blackwell (GB200, B200) and the upcoming 2H upgraded variants (GB300, B300) that promise more memory (288GB using 12 stack High HBM 3E) for more accurate AI inference. A teaser on the next-gen Rubin (CY26E) is also among the anticipated announcements.

The CES event serves as a platform for NVIDIA to showcase its advancements and reinforce its position in high-growth markets, from gaming to data centers and AI technologies. The firm's reiteration of a Buy rating and price target reflects confidence in NVIDIA's strategic direction and product pipeline.

With an impressive gross profit margin of 75.86% and trading near its 52-week high of $152.89, NVIDIA continues to demonstrate strong market performance.InvestingPro analysis suggests NVIDIA is currently trading slightly above its Fair Value. Discover detailed valuation metrics and expert insights with an InvestingPro subscription, including access to comprehensive Pro Research Reports covering 1,400+ top US stocks.

In other recent news, Nvidia (NASDAQ:NVDA) has been the subject of various developments. Foxconn (SS:601138), Nvidia's server assembly partner, reported a 15% revenue increase, exceeding expectations due to the sustained demand for AI infrastructure. The company's strong performance led to a rise in semiconductor stocks, including Nvidia. However, investors remain cautious about the sustainability of this expansion.

On a different note, Arbe Robotics announced a collaboration with Nvidia to enhance automotive free space mapping and AI-driven capabilities. The partnership will integrate Arbe's ultra-high-definition radar technology with Nvidia's in-vehicle computing platform, aiming to advance vehicle safety and autonomy.

Meanwhile, anticipation builds as Nvidia's CEO, Jensen Huang, is set to deliver a keynote speech at the 2025 Consumer Electronics Show (CES). The presentation is expected to underscore the role of Nvidia's innovative technology in powering artificial intelligence (AI), which is predicted to fuel broader market growth.

Lastly, two U.S. senators have challenged the Biden administration's plan to limit the number of AI chips that companies can install in computing facilities in certain countries. They warned that the proposed restrictions could significantly impede the sale of U.S. technology overseas and potentially drive foreign buyers towards Chinese competitors.

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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