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

Core Insights - NVIDIA Corporation is being closely monitored by analysts as a leading player in the AI sector, with Bank of America maintaining a "Buy" rating and a price target of $275, citing its dominant position in AI compute and networking markets [1][2]. Financial Analysis - The $275 price target is based on a 28x CY27E PE excluding cash, which falls within NVIDIA's historical PE range of 25x-56x, justified by its leading market share in the rapidly growing AI sector, despite some concerns regarding global AI project volatility and the cyclical nature of the gaming market [2]. - Analysts have a consensus "Buy" rating for NVIDIA, with an average price target of $250 indicating a potential upside of 36%, while the highest target of $432 suggests a significant upside of 135.49% [3]. Market Developments - Recent developments include U.S. President Donald Trump's approval for NVIDIA to sell its H200 AI chips to China, which was previously restricted. This new approval includes a revenue-sharing requirement aimed at curbing China's chip industry growth [2][3]. - NVIDIA specializes in AI-driven solutions across various sectors, including data centers, self-driving cars, robotics, and cloud services, highlighting its diverse application potential in the tech industry [4].