Bank of America Analysts Up Nvidia Price Target, See More Upside Ahead

Bank of America analysts have raised their price target for Nvidia, predicting a 37% upside from the current share price. They believe that Nvidia has a “generational opportunity” in AI accelerators and that the company is well-positioned to capitalize on the growing market for AI technology. With big-ticket customers like Alphabet, Meta, and OpenAI investing heavily in Nvidia’s GPUs, the company is projected to see significant growth in the coming years.

The total addressable market for AI technology is expected to grow exponentially, reaching $363 billion by 2030. Nvidia, with its dominant market share, is projected to generate a staggering $272 billion in AI computing revenues by that time. This is a significant milestone considering that Apple generated $204 billion in revenue from iPhones in 2023.

In addition to its strong market position in AI technology, Nvidia also boasts significantly higher profit margins than its peers. The company’s free cash flow margin is forecasted to be twice as much as the average of other trillion-dollar American technology giants over the next two years. Nvidia also has income streams outside of selling its custom GPUs, including partnerships with Accenture and Microsoft.

The analysts’ $190 price target implies a market capitalization of $4.7 trillion for Nvidia, making it the most valuable public company ever. Nvidia’s market cap has seen a remarkable increase over the past decade, driven by the success of its AI applications and partnerships. Despite being considered expensive relative to its fundamentals, many investors remain bullish on Nvidia’s future prospects.

Overall, Bank of America’s optimistic outlook on Nvidia reflects the company’s strong position in the AI market and its potential for continued growth in the coming years. With a visionary CEO like Jensen Huang at the helm, Nvidia is poised to capitalize on the increasing demand for AI technology and solidify its position as a key player in the industry.