Bank of America says Nvidia has the potential for further growth. Analyst Vivek Arya reiterated his buy rating on the semiconductor giant and raised his price target by $25 to $190. This reflects an increase of approximately 38.8% from Thursday’s closing price. This would add to the huge stock price rally we’ve already seen this year, sending the stock soaring more than 176% in 2024. NVDA YTD Mountain NVDA, 1st Analysts comment on Taiwan Semiconductor’s third-quarter earnings, Nvidia CEO Jensen Huang said earlier this month that demand for the company’s Blackwell chips is “insane.” ”, which could increase the company’s competitive advantage and opportunities for generational change. Not only that, Arya cited “undervalued” corporate partnerships with companies like Accenture and ServiceNow as catalysts for further growth. “We are also focused on increasing our AI presence in companies where NVDA is a partner of choice (see page 10 for details),” analysts wrote in a note to clients on Thursday. Masu. “NVDA’s work spans multiple industries (Accenture, ServiceNow, Microsoft, etc.), and services like AI Foundry, AI Hub, and NIM provide AI leadership, not only on the hardware side but also on the systems/ecosystem side. The analyst also believes NVIDIA’s valuation remains “compelling.” According to FactSet, the company’s stock price is currently trading at a forward price/earnings ratio of approximately 48.1 times. Looking to the future, Arya said the company expects to generate at least $200 billion in free cash flow over the next two years, which would rival Apple and give it options for growth. This leads him to believe that Nvidia’s FCF generation is also “undervalued” in the market, noting that the difference is effectively about twice the “Magnificent Seven” average. Aria’s stock price rose about 1% in Friday’s premarket following the change in price target.
Bank of America raises price target for NVIDIA, says stock could rise nearly 40%
By NvidiaDaily
