Nvidia Approaches Another Record High as BoA Implies 35% Upside and Insane GB200 Demand
1min read Nvidia just reached another record high, thanks to Wall Street boosting its prospects and much stronger anticipated GB200 orders. The shares jumped 2.5% during Monday trading hours, with a market cap nearing $3.48 trillion.
Bank of America analysts recently raised their price objective on the stock from $165 to $190, implying a 35% upside from the share price at midday on Monday.
The bank points to exponential growth in the AI market in the coming years, which will give Nvidia a generational opportunity as the chip titan continues to strengthen its lead in the market. The AI accelerator market is expected to grow to $280 billion by 2027, and potentially upwards of $400 billion over time—marking huge growth from $45 billion in 2023.
As AI models continue to grow rapidly—with developers like OpenAI, Google, and Meta launching new large language models several times per year—the need for computing will only increase, analysts predict.Each new major LLM generation, especially those developed for larger size and better reasoning capabilities, will require greater training intensity.
We continue to see the pace of new model development increase. LLMs in particular are being developed for both larger size and better reasoning capabilities, which both require greater training intensity, the analysts said.
They also point to Nvidia's strong partnerships with enterprise customers like Accenture, ServiceNow, Oracle, and others, which show the growing presence of AI at big companies and Nvidia's role as the partner of choice.
NVDA's engagements span multiple verticals (e.g., Accenture, ServiceNow, Microsoft), and offerings such as AI Foundry, AI Hubs, and NIMs are key levers to its AI leadership, not only on the hardware side but also on the systems/ecosystems side, the analysts said.
The analysts also said Nvidia's financials are set up well for future gains. Given its free cash flow generation at 45%-50% margins, which is nearly double that of other Magnificent 7 stocks, Nvidia will be able to generate $200 billion in free cash flow over the next two years, they wrote.
On the other hand, renowned tech analyst Ming-Chi Kuo also cheers robust demand for Nvidia's Blackwell GPU GB200. He recently released industry chain order information for Nvidia's Blackwell GB200 chip, pointing out that Microsoft is currently the largest GB200 customer in the world, with Q4 orders surging 3-4 times, exceeding the total orders of all other cloud service providers. The strong demand for GB200 will also help key supply chains go further and make Nvidia unique.
