NVIDIA Corporation (NVDA) is poised for a strong performance as BofA Global Research reiterates its "Buy" rating with a price objective of $190, reflecting confidence in the company's fundamentals ahead of its FQ4 2025 earnings call on February 26. The report anticipates modest beats in sales guidance, despite potential lower gross margins due to the Blackwell product transition and China restrictions. BofA highlights NVIDIA's robust position in the data center market, projecting a 60% y/y growth in data center sales for CY25, and emphasizes the company's competitive edge in software and hardware co-optimization.
The report underscores NVIDIA's strategic advantages, noting, "NVDA is the leading platform for delivering compute, driven by 4 distinct forces," including advancements towards artificial general intelligence and AI inference. Despite geopolitical headwinds, such as trade tensions and AI diffusion rules, BofA expects rising demand from Western markets to offset challenges in China. The upcoming GPU Technology Conference in March is expected to further bolster investor sentiment with a focus on NVIDIA's solid pipeline and innovations in AI and robotics.
NVIDIA's stock is currently trading at $118.50, up 1.58% from the previous close.