NVIDIA Corporation's stock is experiencing a positive surge following BofA Global Research's reaffirmation of its "Buy" rating and a price target of $190. The report highlights NVIDIA's strong fundamentals and anticipates modest beats in sales guidance, despite potential challenges like lower gross margins due to the Blackwell product transition and China restrictions. BofA's confidence is bolstered by NVIDIA's robust position in the data center market, projecting a 60% y/y growth in data center sales for CY25. The strategic advantages in software and hardware co-optimization, along with advancements towards artificial general intelligence, are expected to drive NVIDIA's growth, offsetting geopolitical headwinds.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) has seen a decline, dropping 3.40% to $27.52 as of 10:00 AM on Tuesday, February 4.