Nvidia: BofA again raises its price target

(CercleFinance.com) - Bank of America announced on Friday that it had raised its price target for Nvidia shares from $165 to $190, praising the group's solid positioning and the opportunities available.


The American investment bank - which is maintaining its buy recommendation on the stock that has become its preferred choice in AI - explains that it has raised its earnings forecasts on the processor manufacturer for both the 2024/2025 and 2025/2026 financial years.

In a note, Bofa says it is confident in the company's ability to gain between 80% and 85% market share in a sector that it expects to be worth $400 billion.

The New York-based firm backs up its optimism with (1) recent good news for the sector (TSMC results, AMD conference, "insane" demand for Blackwell, etc.), (2) what it sees as underestimated partnerships with the likes of Accenture and Oracle, and (3) the prospect of free cash flow (FCF) reaching $200 billion over the next two years.

BofA adds that the chipmaker's valuation remains 'attractive' on the basis of a 2025 P/E of just 0.6x, where the other 'Magnificent Seven' currently trade on average at 1.9x earnings.

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