Bank of America Reiterates Buy on Nvidia (NVDA) , Citing Leadership in AI Compute

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Analysts Are Watching Closely.  On December 10, Bank of America reiterated the stock as “Buy” with a $275 price target. The firm said it’s sticking with the stock due to its leading share in AI compute/networking markets.

“Our $275 PO is based on 28x CY27E PE ex cash, within NVDA’s historical 25x-56x forward year PE range, which we believe is justified by NVDA’s leading share in fast-growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.”

The stock has also recently been in the spotlight following reports that US President Donald Trump has given Nvidia the green light to sell its H200 AI chips to China.

While the company was previously banned from selling advanced AI chips to China, the revised approval come with a revenue-sharing requirement and is designed to prevent China from accelerating its own chip industry.

Analysts on Wall Street currently have a consensus Buy rating on the stock. The average price target of $250 implies a 36% upside, however, the Street-high target of $432 implies an upside of 135.49%.

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA  and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.