Bank of America Securities analyst Vivek Arya has reiterated their bullish stance on NVDA stock, giving a Buy rating today.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Nvidia’s strategic positioning and growth potential. The company’s recent decision to invest up to $100 billion in OpenAI is expected to yield a significant return on investment, potentially generating $300 to $500 billion in revenue over time. This partnership not only positions Nvidia as a preferred strategic compute and networking partner for OpenAI but also enhances its competitive edge over other vendors like AVGO and AMD.
Furthermore, Nvidia’s dominance in the rapidly expanding AI sector, coupled with a compelling valuation, supports the Buy rating. The company’s valuation metrics, such as a price-to-earnings ratio of approximately 30x for CY26 and a PEG ratio of less than 1x, are favorable compared to its large-cap growth peers. Additionally, Nvidia’s strong free cash flow margins and strategic investments in the ecosystem are expected to expand its addressable market and accelerate product development, further solidifying its growth prospects.
Arya covers the Technology sector, focusing on stocks such as Nvidia, Advanced Micro Devices, and Intel. According to TipRanks, Arya has an average return of 19.3% and a 59.92% success rate on recommended stocks.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $225.00 price target.