Nvidia Analyst Maintains Optimism Amidst Market Selloff, Projects 57% Upside
Amidst the recent decline in Nvidia (NVDA) stock price, BofA's Vivek Arya remains bullish on the semiconductor giant, reiterating his top pick rating for 2025 ahead of its earnings announcement on February 26.
Arya's price target of $190 represents a potential upside of approximately 57% from current trading levels. His target is one of the highest on Wall Street, according to Yahoo Finance data.
In a note to clients, Arya outlined three key reasons for his optimistic outlook:
* Reassurance on Nvidia's execution of its Blackwell AI architecture
* Strong growth projections for fiscal year 2026/calendar year 2025, with data center sales expected to increase by over 60% year-over-year
* Excitement surrounding the upcoming GTC Conf. and its focus on advanced products, including the GB300 GPU and physical AI technologies
Despite Arya's positive stance, Nvidia's stock has faced headwinds this year due to concerns over increased competition in the AI chip space. However, Arya argues that Nvidia's valuation has become more attractive, trading at a forward price-to-earnings ratio of 26 times, which is at the lower end of its historical range.
Arya also highlights Nvidia's competitive advantages, including its software capabilities and moats against custom chip players.
"The stock is close to historical trough, cloud capex solid, competitive moats in software and versus ASIC under-appreciated," Arya noted.