NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks in the Spotlight for Investors. On December 11, BofA Securities analyst Vivek Arya reiterated a Buy rating on the stock with a $275.00 price target.
The bank believes that Nvidia shares remain compelling at current levels due to its unmatched leadership, long-term visibility, and margin durability.
The firm hosted Nvidia’s Investor Relations representative Toshiya Hari for a virtual investor meeting, during which several key takeaways were highlighted. First, the firm noted how Nvidia’s GPUs are a “full generation ahead of competition.”
Current available GPU-based LLMs were trained on old Hopper architecture instead of Blackwell (LLMs to be available in early 2026), which offers 10x–15x better generation-over-generation performance.
Second, the analyst noted that the next-generation Vera Rubin is on track for 2H26 and there are no changes to roadmap. Pre-fill inference CPX version also remains scheduled for Q4 2026.
Demand for the company remains broad-based, led by significant and growing customers such as Google. Major model builders also continue to rely on Nvidia for training.
The company also enjoys both demand and supply visibility into a $500B sales outlook in CY25-26 “at the minimum” along with incremental OpenAI/Anthropic partnerships.
The firm further highlighted Nvidia’s co-design with customers, with an end-to-end platform of CPUs, GPUs, scale-up, scale-out, scale-across, and software as its key competitive moat, stating that it is something no one else can replicate.
While the impact of recent export approval for the H200s is too early to assess, the firm noted that the mid-70% GM outlook remains unchanged despite rising memory costs.
“Meanwhile, we continue to believe valuation at 25x/19x CY26E/27E PE remains compelling given it represents just ~0.5x earnings growth rate versus broader Mag-7 and growth peers at ~2x.”
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 potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
