NVIDIA Corporation (NASDAQ:NVDA) is one of the AI stocks in focus for investors. On December 11, BofA Securities analyst Vivek Arya reiterated a Buy rating on the stock with a price target of $275.00.
The bank believes Nvidia shares remain attractive at current levels due to its unmatched leadership, long-term visibility and margin durability.
The firm hosted Nvidia Investor Relations representative Toshiya Hari for a virtual investor meeting, during which several key takeaways were highlighted. First, the company noted that Nvidia’s GPUs are “a generation ahead of the competition.”
Currently available GPU-based LLMs were trained on the old Hopper architecture instead of Blackwell (LLMs will be available in early 2026), which delivers 10-15x better performance generation after generation.
Secondly, the analyst noted that the next generation of Vera Rubin is on the way for the second half of 2026 and there are no changes to the roadmap. The CPX version of pre-fill inference also remains scheduled for Q4 2026.
Demand for the company remains broad, led by large and growing customers like Google. Major model builders also continue to rely on Nvidia for their training.
The company also enjoys visibility into both demand and supply on a sales outlook of $500 billion in FY25-26 “at minimum” along with incremental partnerships with OpenAI/Anthropic.
The firm also highlighted Nvidia’s co-design with customers, with an end-to-end CPU, GPU, upscaling, upscaling, upscaling and software platform as its key competitive moat, saying it’s something no one else can replicate.
While it is too early to assess the impact of the H200’s recent export approval, the firm noted that GM’s outlook of around 70% remains unchanged despite rising memory costs.
“Meanwhile, we continue to believe the valuation at 25x/19x CY26E/27E PE remains compelling given it represents only ~0.5x the earnings growth rate versus broader Mag-7 and its growth peers at ~2x.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-powered solutions and provides platforms for data centers, autonomous vehicles, robotics and cloud services.
While we recognize NVDA’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None.