Benzinga - by Surbhi Jain, .
Ever since artificial intelligence took center stage on Wall Street, Nvidia Corp (NASDAQ:NVDA) hasn’t left the spotlight. After an unprecedented 245% rise through 2023, the stock has continued to stride high.
So far in 2024, the stock is up 80% and as Wall Street watchers continue debating Nvidia stock’s valuation, analysts maintain optimism, considering it a potentially undervalued but expensive buy.
Also Read: Hold Or Sell Nvidia Shares? Investors Weigh Options After Recent Turbulence: ‘…I Do Think The Stock Is Overvalued’
The Nvidia Analyst: BofA Securities analyst Vivek Arya reiterated Buy rating on Nvidia stock. Arya raised the price target from $925 to $1,100 a share. The new price target implies an upside of 28.2%.
That’s good prospects from a stock that’s already at the forefront of the AI-driven stock surge on Wall Street.
The Nvidia Thesis: Analyst Vivek Arya heralds Nvidia as “AI Woodstock,” showcasing its pivotal role in the AI landscape.
Despite NVDA’s year-to-date outperformance, Arya emphasizes its attractiveness in valuation and ownership relative to peers in the semiconductor and information technology sectors.
With genAI driving expansion in the data center TAM from $1 trillion to $2 trillion, NVDA stands at the forefront of innovation. The upcoming GPU Tech Conference promises to unveil the rising impact of genAI and opportunities to re-architect global computing infrastructure, the analyst says.
As NVDA navigates competition and regulatory constraints, its multi-billion-dollar TAM expansion beyond US hyperscalers underscores its growth potential.
“NVDA trading lower today at 37x NTM PE vs. 44x PE when ChatGPT was launched in November 2022,” said Arya, hinting at untapped upside potential.
NVDA Price Action: Shares of Nvidia were down 2.8% at $893.57 at the time of publication Wednesday.
Read Next: Citadel CEO Ken Griffin Unsure Of AI Market Bubble But Says Nvidia ‘Sits In A Pretty Good Position’ Now: ‘Really On Top Of Their Game’
Photo: Michael Vi/Shutterstock
Latest Ratings for NVDA
| Mar 2022 | Goldman Sachs | Reinstates | Neutral | |
| Feb 2022 | Summit Insights Group | Downgrades | Buy | Hold |
| Feb 2022 | Mizuho | Maintains | Buy |
View the Latest Analyst Ratings
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