Nvidia stock is expected to jump more than 50%, according to analysts at Bank of America, who continue to see the chipmaker in a “dominant position” in the AI market.
Despite a recent 8.5% drop in stock price following a quarterly earnings report that only narrowly surpassed Wall Street’s expectations, the investment firm has raised its price target on Nvidia from $190 to $200.
Nvidia’s latest results showed an impressive 78% revenue growth, reaching $39.3 billion, just ahead of Wall Street’s forecast of $38.3 billion.
However, investors were hoping for more substantial outperformance, leading to the recent stock decline. The company’s first-quarter revenue forecast of $43 billion also exceeded analysts’ expectations by $1 billion.
Bank of America remains bullish on Nvidia’s future, pointing to its continued success with the Blackwell chip, which has far surpassed sales expectations.
Despite some challenges, including competition from DeepSeek’s AI models and concerns over trade restrictions with China, Nvidia continues to lead in the AI market, especially in compute-intensive applications and AI-driven robotics.
BofA analysts noted that Nvidia’s stock still offers strong upside potential, given its leadership position in AI development and compelling valuation compared to other chipmakers in non-AI markets like Texas Instruments.
Nvidia’s annual GTC conference in mid-March is expected to further boost excitement, with the company preparing to unveil new AI products, including the Blackwell Ultra chip and a new AI platform called Vera Rubin.
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