(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Bank of America (BoA), a major U.S. investment bank, has significantly raised its price target for Nvidia. On October 18 (local time), BoA set Nvidia's target price at $190, an increase of $25 from the previous target of $165, citing continued demand for artificial intelligence (AI)-specific chips.

Nvidia's stock closed at $138, up 0.78% on the same day. Despite a 13% surge in October that far outpaced the S&P 500's increase of 1.4%, BoA expressed optimism that Nvidia's stock could rise nearly 40% further.

In a recent report, BoA analyst Vivek Arya described Nvidia as a "once-in-a-lifetime opportunity," emphasizing the positive outlook based on TSMC's strong third-quarter performance and CEO Jensen Huang's comments on "unprecedented demand for Blackwell."

The Blackwell chip, praised by Huang, is referred to as a "monster chip" due to its 2.5 times faster processing capabilities compared to previous models. Production is set to ramp up in the fourth quarter, with Nvidia reporting that the entire year's supply of Blackwell has already been sold out.

BoA noted that TSMC's stronger-than-expected performance and positive outlook for the current quarter indicate robust demand for AI-specific chips. The majority of Wall Street analysts share a positive sentiment toward Nvidia, with 37 out of 43 investment banks recommending a buy. However, BoA's target price of $190 is notably higher than those set by other banks.

 

 

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