Nvidia: Strong AI Market Position and Attractive Valuation Reinforce Buy Rating

Bank of America Securities analyst Vivek Arya has maintained their bullish stance on NVDA stock, giving a Buy rating yesterday.

Vivek Arya’s rating is based on Nvidia’s strong position in the AI market and its ability to address key investor concerns. The company has demonstrated robust demand and customer interest in both cloud and enterprise sectors, supported by a full-scale supply ramp. Arya highlights Nvidia’s successful execution in the Blackwell rack ramp and its strategic positioning to capitalize on AI diffusion and sovereign demand, as well as the de-risking of China-related sales.
Furthermore, Arya points out that Nvidia’s current valuation is attractive, with a 30x next twelve months price-to-earnings ratio, which is lower than its historical median. The company’s ongoing developments, such as the production of Blackwell Ultra and the potential $50 billion opportunity per gigawatt in data center installations, underscore its growth potential. These factors collectively reinforce Arya’s Buy rating, with a price objective of $180, making Nvidia a top sector pick.

Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices. According to TipRanks, Arya has an average return of 13.9% and a 57.37% success rate on recommended stocks.

In another report released yesterday, DBS also maintained a Buy rating on the stock with a $160.00 price target.