Bofa titles Analyst Vivek Arya maintained a purchase note on NVIDIA Corp Nvda with a Price target of $ 190.
NVIDIA is Arya’s first choice before calling on the results of the fourth quarter of the company scheduled for February 26. Given the transition of the Blackwell product and restrictions in China, the analyst expects a modest beat, online sales advice and a gross margin lower in the first quarter.
However, the call could mark the hollow of the feeling of investors, because Arya expects Nvidia to be reassured about the execution of Blackwell, signals confidence around the 2026 exercise and the calendar 2025 with growth of 60 % + sales of data centers and create excitation before the GTC flagship conference March 17th where Focus moves to a solid pipeline (GB300, Rubin) and physical AI (robotic).
Meanwhile, the NVIDIA action is negotiated at a calendar ~ 26 times 26 times 2025th PE (extremity of 25 to 59 times, median 39 times NTM PE).
Despite the supposed “revolutionary” optimizations of Deepseek, the intentions of expenditure among the large customers of Nvidia, including Microsoft Corp Msft And Meta Platforms Inc Metahave been unchanged so far.
Nvidia is the main platform for the delivery of computer science, driven by the formation of the border model, heading towards general artificial intelligence (AG), the formation of derivative model (like Deepseek) and the inference of the ‘AI, where calculation requirements increase 3 to 5 times due to more recent reasoning and more precision models and traditional upgrades to accelerated infrastructure.
Although the mixture between the four pilots could evolve, Arya noted that the overall pie increased over time (~ 500 billion dollars Tam on the 2028 and 2029 calendar, 5 times and 2.5 times compared to the calendar 2024 and 2025 ).
From the calendar, 2018-24, the performance (in flops) for Nvidia processors have increased 1000 times, but its sales of data centers have also increased 300 times, so one has not cannibalized but increased the other . Optimizations in hardware and software are key elements of computer science.
Arya expects a greater application of the AI dissemination rules set out by the Biden administration. He expects the growing demand of the West (American cloud, company, Stargate Openai, etc.) compensates for the Winds of China for Nvidia.
Arya loves GPU sellers (Nvidia) and Asic (Broadcom Inc Avo,, Marvell Technology, Inc MRVL) On the rising tide of the request for calculation / networking of the AI, but do not yet see evidence of GPU losing their share of 80% + and asics taking more than 10% to 15% of the overall market of the accelerator .
Inference becomes more and more, no less, at high calculation intensity, while Broadcom highlighted the big clusters during its last call as being used for training (where Nvidia dominates) rather than in inference .
The coherent cooptimization of NVIDIA of hardware and software, as well as its large corporate pits, will be difficult for Asic suppliers to overtake, Arya added.
For Nvidia, Arya projected a turnover in the fourth quarter of $ 38.7 billion and an adjusted BPA of $ 0.86.
Price action: The NVDA share increased by 2.45% to $ 119.52 in the last check on Tuesday.
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