One Wall Street analyst just laid out several reasons to bet on Nvidia (NASDAQ:NVDA). Bank of America Securities analyst Vivek Arya recently raised his NVDA stock price target from $925 to $1100 and maintained a “buy” rating. That implies upside potential of about 24%, suggesting that the artificial intelligence (AI) boom will only keep expanding from here.
While shares of Nvidia are down today as negative momentum sweeps the tech sector, Wall Street sentiment toward the company is profoundly positive. Several other analysts have issued bullish takes on this AI darling, as reflected by its impressive growth over the past month.
This week hasn’t been great for NVDA stock, which is still in the red by 1% for the past five days. But investors shouldn’t lose sight of the bigger picture. Nvidia has surged by staggering amounts since the launch of ChatGPT triggered the current AI gold rush. But even after rising almost 300% over the last year, the stock may still have room to run.
The Bullish Case for NVDA Stock
At the core of Arya’s bullish take on NVDA stock is the upcoming Nvidia GPU Technology Conference (GTC). This event has been described as the “Woodstock” of AI and there’s plenty of reason to suspect that the event will send shares soaring as new information from the company creates further bullish momentum.
Arya highlights the importance of the conference, speculating that it will bring important updates on Nvidia’s product pipeline and allow the company to showcase its potential to “help upgrade computing infrastructure.”
With the conference scheduled for March 18, it’s easy to see why the analyst is highly bullish on NVDA stock. Arya said in a note to clients:
“Our $1100 PO is based on 37x CY25E PE ex cash, within NVDA’s historical 26x-69x forward year PE range, justified given stronger growth opportunities ahead as gaming cycle troughs and data center demand potentially faces strong, long-term demand dynamics.”
All this suggests that shares are in an excellent position to keep riding the AI wave to new heights. NVDA stock currently holds a strong buy consensus on TipRanks, with 39 out of 41 Wall Street analysts maintaining buy ratings and zero analysts rating the stock as a sell. Arya is the ninth analyst to issue or maintain a “buy” rating since the beginning of March.
Still Rising Steadily
Investors should absolutely be watching NVDA stock ahead of next week’s conference as the company prepares to roll out key updates. But it should also be noted that Nvidia is one of the stocks benefitting from the current crypto rally.
Bitcoin (BTC-USD) has surged more than 175% over the past six months and many other cryptos, both large and small, are also enjoying the ride. As InvestorPlace contributor Joey Frenette notes, “as the crypto boom coincides with the ongoing AI boom, crypto miners should again start buying up Nvidia hardware (think GPUs or crypto mining-specific chips like CMPs).”
Arya didn’t note the crypto connection in his take on NVDA stock. However, it is still a relevant factor for investors considering a bet on this AI standout.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
