NVIDIA's AI dominance is solid, with Bank of America optimistic that the stock price could rise another 40%
Bank of America reiterated its "buy" rating on NVIDIA and raised its target price from $165 to $190, expecting the stock price to rise by nearly 40%. Analysts pointed out that NVIDIA holds 80%-85% market share in the $400 billion market and the earnings per share expectations for the next few years have also been raised. NVIDIA's free cash flow profit margin is as high as 45%-50%, with an expected cash flow of over $200 billion in the next two years. The stock has risen by 177% year to date
According to the Zhitong Finance and Economics APP, Bank of America has raised its earnings per share expectations for NVIDIA (NVDA.US) in the coming years, citing the company's 80% to 85% market share in the $400 billion potential market. Bank of America reiterated its "buy" rating for NVIDIA and raised its target price from $165 to $190, nearly 40% above the current level.
Bank of America raised NVIDIA's earnings per share expectations for 2025 from $2.81 to $2.87; for 2026 from $3.90 to $4.47; and for 2027 from $4.72 to $5.67.
Bank of America analyst Vivek Arya stated on Thursday, "We note that NVIDIA's underestimated free cash flow (FCF) profit margin is above 45-50%, nearly double the average of the seven giants at 23-25%. In dollar terms, NVIDIA may generate over $200 billion in cash flow over the next two years, comparable to Apple (AAPL.US), providing growth opportunities."
Bank of America also emphasized NVIDIA's increasingly important role in collaborations with companies such as Accenture (ACN.US), ServiceNow (NOW.US), and Microsoft (MSFT.US).
It is reported that driven by strong financial reports from TSMC (TSM.US), NVIDIA, the AI chip leader, saw its stock price rise nearly 4% during Thursday's trading session, hitting a new intraday high of $140.89. The stock has risen 177% year-to-date