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NVIDIA stock reiterated at Buy at BofA as new products bolster leadership position

EditorRachael Rajan
Published 03/06/2024, 11:56
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On Monday, BofA Securities maintained a bullish stance on NVIDIA Corporation (NASDAQ:NVDA), sustaining its Buy rating and a price target of $1,500.

The firm's confidence in NVIDIA remains robust following the CEO's keynote preceding the Computex expo in Taiwan. The presentation showcased NVIDIA's advancements in artificial intelligence (AI), highlighting several key product announcements.

NVIDIA introduced its new GB200 NVL2 platform, which consists of two Blackwell GPUs and two Grace CPUs, designed for mainstream large language model (LLM) inference applications. This platform is particularly suited for scalable configurations.

Additionally, NVIDIA revealed its MGX modular reference design platform that has expanded support to over 90 systems, a significant increase from just 14 the previous year. This includes compatibility with upcoming CPUs from AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) set to launch later in the year.

The company also announced an annual product release schedule for its AI offerings, which includes the Blackwell Ultra slated for 2025 and Rubin for 2026. Moreover, NVIDIA plans to introduce new CPUs, SuperNICs, and switches. These developments are part of NVIDIA's strategy to target millions of GPU-sized clusters for large hyperscale customers by as early as 2026, which is expected to significantly enhance unit opportunities.

On the flip side, NVIDIA is not just focusing on large-scale operations but is also addressing mainstream and enterprise AI use cases with its NVL2 and MGX platforms. "We highlight NVDA™s multi-generational roadmap visibility and its breadth of portfolio as key growth drivers," said BofA analysts.

InvestingPro Insights

With NVIDIA Corporation (NASDAQ:NVDA) making headlines for its innovations and strategic roadmap, it's crucial for investors to look at key metrics and insights that could influence their investment decisions. NVIDIA's financial health and market performance are reflected in real-time data from InvestingPro. The company's market capitalization stands at an impressive $2.69 trillion, showcasing its significant presence in the market. Furthermore, NVIDIA's price-to-earnings (P/E) ratio is currently at 62.94, indicating high investor expectations for future earnings growth. This optimism is echoed in the company's revenue growth, which has surged by 208.27% over the last twelve months as of Q1 2025.

InvestingPro Tips highlight that NVIDIA has a perfect Piotroski Score of 9, suggesting strong financial health, and analysts are anticipating sales growth in the current year. Additionally, 37 analysts have revised their earnings upwards for the upcoming period, reflecting confidence in NVIDIA's future performance. These insights, combined with NVIDIA's role as a prominent player in the Semiconductors & Semiconductor Equipment industry, underscore the company's robust market position and potential for continued success.

For those looking to delve deeper into NVIDIA's financials and market prospects, there are additional InvestingPro Tips available. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This is an opportunity to gain comprehensive insights into NVIDIA's performance and make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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