Nvidia: stock up, as BofA raises TP

(CercleFinance.com) - Nvidia shares closed up nearly 1% in Wall Street on Friday, as Bank of America raised its target price for the stock from $165 to $190, praising the group's solid positioning and the opportunities available to it.


The US investment bank - which is maintaining its buy rating on the stock that is now its best pick in AI - explains that it has raised its earnings forecasts on the processor manufacturer for both 2024/2025 and 2025/2026.

BofA says that 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 $400bn.

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 $200bn 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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