NVIDIA AI Chip Dominance Propels Growth: Analyst Sets $190 Price Target Amid Strong Demand
NVIDIA Corporation (NVDA) continues to solidify its position as one of the largest and most influential companies in the world, thanks in large part to its dominance in the artificial intelligence (AI) chip market. Bank of America analyst Vivek Arya has raised his confidence in the Santa Clara-based semiconductor giant, noting that its lead in the AI space is set to expand further.
Bank of America Analyst Reaffirms ‘Buy’ Rating
In a research note published Thursday, Arya reaffirmed his Buy rating for NVIDIA, setting a price target of $190. The positive outlook comes after an investor meeting in Las Vegas, where Arya and his semiconductor team hosted NVIDIA’s Chief Financial Officer, Colette Kress. Arya’s assessment reflects increasing optimism in the company’s growth prospects, particularly driven by its AI and chip innovations.
NVIDIA Role as an AI Incubator
Arya highlighted NVIDIA’s unique position in the AI space, referring to the company as an “AI incubator.” The analyst believes that NVIDIA’s highly leverageable silicon, system, and software platform is enabling the creation of new growth engines in several key sectors. These include physical AI/robotics, on-premise AI workstations (via Project Digits), AI-powered PCs, and autonomous driving, with notable partnerships with Uber and Toyota. Arya pointed out that no other merchant or ASIC rival can match NVIDIA’s breadth and innovation in these areas, further cementing its industry leadership.
Strong Demand for Blackwell and Hopper Platforms
NVIDIA’s flagship Blackwell chip is poised to be a major growth driver. Arya noted strong demand for both Hopper and the new Blackwell platforms, with Hopper continuing to be a highly capable product for many customers. However, there is a growing desire for the supply-constrained Blackwell, which is now available across 15 partners and over 200 configurations. Arya’s analysis suggests that demand for these platforms remains robust, providing strong tailwinds for NVIDIA’s growth.
Trade Headwinds and Near-Term Stock Volatility
Despite the strong outlook, Arya cautioned that NVIDIA’s stock may face near-term volatility, particularly with potential trade headwinds expected under the incoming Trump Administration. As the geopolitical landscape evolves, these uncertainties could impact NVIDIA’s performance in the short run.
Stock Movement
At the time of publication, NVIDIA shares were down 2.8% to $136.14, reflecting broader market trends and investor sentiment. However, Arya’s price target of $190 indicates significant upside potential, suggesting that long-term investors may find value in the company despite short-term fluctuations.
