Analyst Vivek Arya from Bank of America Securities reiterated a Buy rating on Nvidia and increased the price target to $235.00 from $220.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Nvidia’s strong position in the AI infrastructure market. Arya emphasizes Nvidia’s ability to maintain an 80% market share in this rapidly growing sector, coupled with industry-leading free cash flow margins exceeding 45%. Despite geopolitical uncertainties, particularly concerning China, Arya believes that Nvidia’s sales in other regions will more than compensate for any potential setbacks.
Nvidia’s financial outlook is further bolstered by its projected earnings power, with expectations of over $10 per share by 2027. Arya also notes the successful ramp-up of Nvidia’s Blackwell Ultra production and the promising future launch of next-generation Rubin hardware. While acknowledging potential near-term volatility, Arya remains confident in Nvidia’s long-term growth prospects, leading to an increased price objective of $235.
According to TipRanks, Arya is a 5-star analyst with an average return of 17.9% and a 61.23% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, ON Semiconductor, and Intel.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $230.00 price target.