NVIDIA Corporation (NVDA) remains a top pick for BofA Global Research, which reiterates its "Buy" rating and sets a price objective of $190. The report highlights NVIDIA's role as an AI incubator, leveraging its silicon, system, and software platform to drive growth in sectors like data centers, robotics, and autonomous driving. The company is positioned at the forefront of a $2 trillion infrastructure opportunity, transitioning traditional architectures to accelerated computing and supporting new generative AI business models.
The recent CFO dinner post-CES reinforced confidence in NVIDIA's growth trajectory, with strong demand for its AI platforms, particularly the new Blackwell products. The transition from Hopper to Blackwell is progressing well, with Blackwell now available across 15 partners and 200+ configurations. NVIDIA anticipates gross margins returning to the mid-70% range as Blackwell fully ramps up.
Despite potential volatility due to enhanced China restrictions and product transitions, NVIDIA's long-term outlook remains robust. The company is addressing a significant opportunity in AI compute demand, driven by factors such as model pre-training, synthetic data generation, and enterprise AI adoption. "NVDA's unique/highly leverageable silicon/system/software platform is spawning new growth engines," notes BofA, emphasizing the company's competitive edge over custom ASIC solutions.
NVIDIA was trading at $135.16, down 3.53% on January 10, at 9:40.