Nvidia 5000 Series, Product Updates Make It Top Semiconductor Pick Ahead Of Jensen Huang's CES Keynote: Analyst

NVIDIA Corporation NVDA stock hit new all-time highs Monday as investors and analysts size up the company's new products and growth opportunities that will be key storylines at this year's CES conference.

The NVDA Analyst: Bank of America analyst Vivek Arya reiterated a Buy rating on Nvidia with a $190 price target.

The NVDATakeaways: Nvidia updates on its AI and robotics growth and the unveiling of the new Nvidia 5000 series graphics cards are among the key catalysts for the stock after CES, Arya said in a new investor note.

The analyst named Nvidia the top sector pick ahead of a keynote presentation by CEO Jensen Huang on Monday night.

The keynote and other presentations could highlight Nvidia's presence in many of the CES trending topic areas including robotics, gaming, PC and artificial intelligence, the analyst said.  

Arya said the key question is how quickly the new products will help shareholders.

"The challenge in our view is however making the products reliable enough, cheap enough and pervasive enough to spawn credible business models," Arya said.

The analyst said robotics could be a "cool but niche opportunity" similar to the metaverse and autonomous cars that could take time to reward shareholders.

"While we don't doubt NVDA's capabilities, we are unsure as to when and how fast they can influence NVDA's financials."  

The analyst said CES remains a "positive catalyst" for Nvidia that can show the company's dominance and opportunity in growth markets.

Arya said Nvidia's new products could help the company continue its strong pace of year-over-year sales growth.

"NVDA's 50%+ YoY sales growth in CY25E YoY could be the fastest in the S&P 500 index, based on current consensus."

The analyst said Nvidia trades at around 30 times its forward price-to-earnings ratio, compared to a historical trading range of 25x to 35x, making the stock attractive while trading in the middle of the range.

NVDA Price Action: Nvidia stock is up 4.49% to $150.96 on Monday versus a 52-week trading range of $49.48 to $152.89. Nvidia shares hit new all-time highs earlier Monday morning and are up over 190% over the last year.

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