Nvidia's Lead Expands, Analyst Says: 'AI Demand Remains Very Strong'

NVIDIA Corp NVDA has grown to being among the largest companies in the world due to its AI chip dominance. One analyst sees the Santa Clara, California-based company’s lead expanding.

The Nvidia Analyst: In a note published Thursday, Bank of America analyst Vivek Arya reiterated a Buy rating for Nvidia with a price target of $190.

Main Takeaways: Arya’s semiconductor team hosted Nvidia CFO Colette Kress for an investor meeting in Las Vegas.

Arya is more confident in Nvidia as an “AI incubator.”

“NVDA’s unique/highly leverageable silicon/system/software platform is spawning new growth engines in physical AI/robotics, onpremise AI workstations (Project Digits), AI PC, autonomous driving (Uber, Toyota partnership) – no other merchant or ASIC rival can match this,” the analyst said.

Arya noted other positive signs for the company’s flagship Blackwell chip.

“Overall, the tone for AI demand remains very strong across both Hopper and new Blackwell platforms,” the analyst said. “Hopper run rate is not necessarily tied to demand, but rather to the overall supply situation which can impact the product mix. NVDA noted Hopper remains a very capable product for many customers today, but most customers have outlined their desire for (supply-constrained) Blackwell which is now available across 15 partners and 200+ configurations.”

Arya foresees possible near-term volatility in Nvidia’s stock due to possible trade headwinds during the incoming Trump Administration.

Price Action: Shares of Nvidia were down 2.8% to $136.14 at the time of publication Friday.

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