Nvidia stock has surged 170% this year, becoming the largest company in the world. Despite this, Bank of America believes the stock still presents a good investment opportunity, with any decline seen as a chance to buy more. Analyst Vivek Arya outlined five reasons why investors should remain bullish on the chipmaker driving the artificial intelligence boom. He noted that Nvidia’s software offerings could fuel the next stage of growth. Arya highlighted that GenAI hardware deployments are in the early stages of a significant deployment cycle and could capitalize on a $300 billion opportunity. Additionally, benefits from next-generation Blackwell AI accelerator systems and strong demand among cloud customers are expected later this year. Arya also pointed out potential demand for local enterprise/sovereign AI and early-stage software monetization. Recurring software services could unlock the next stage of growth for Nvidia.
Rosenblatt increased its price target for Nvidia to $200 per share, citing the company’s potential to generate a significant recurring revenue stream from its CUDA software offering. Arya emphasized the compelling valuation of Nvidia, trading at a cheaper valuation compared to last year. He noted that the deployment of genAI is a mission-critical among well-funded cloud customers, unlike the risky debt-funded ‘dotcom boom’.
Arya reiterated a “Buy” rating on Nvidia stock with a $150 price target, representing a 12% upside from current levels. The bank believes that any volatility in Nvidia stock is likely to be short-lived and that investors should view any decline as a buying opportunity. The company’s strong software offerings, potential for recurring revenue, and attractive valuation make it an appealing investment option despite its significant rally this year. Investors should keep an eye on Nvidia as it continues to drive innovation in the artificial intelligence space.
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https://markets.businessinsider.com/news/stocks/nvidia-stock-price-prediction-buy-nvda-decline-dot-com-differences-2024-6
