NVIDIA Corporation (NVDA) remains a top pick for BofA Global Research, which reiterates its "Buy" rating and sets a price objective of $190, ahead of the CES tradeshow starting January 6. The report highlights NVIDIA's strategic focus on expanding its AI opportunities through robotics, gaming, and data center advancements. Key expectations include updates on NVIDIA's robotics strategy, the launch of RTX 50xx gaming cards, and advancements in AI PC and data center technologies. The report emphasizes NVIDIA's potential to maintain its AI dominance, stating, "We expect CES to feature reassuring updates on Blackwell shipments and next-gen variants, which could help NVDA regain control of the narrative around custom-chips."
Despite recent market concerns, NVIDIA is projected to achieve over 50% y/y sales growth in CY25, potentially making it the fastest-growing company in the S&P 500. The report notes that NVIDIA's current valuation, with a 30x CY25 PE, is attractively positioned within its historical range, supported by a compelling 0.6x PEG ratio relative to its growth prospects. BofA remains optimistic about NVIDIA's ability to leverage its end-to-end capabilities in AI and robotics, though it acknowledges challenges in making these technologies pervasive and financially impactful.
NVIDIA was trading at $142.70, up 1.83% as of January 8.