Nvidia Has 'Multi-Year Lead' On AMD, Intel: Bank Of America Analyst Expects Stock To Hit $1,500 Per Share

Following a series of investor meetings with Nvidia Corp NVDA executives, Bank of America on Wednesday reiterated its Street-high price target of $1,500 and reaffirmed the AI giant as a top sector pick.

What To Know: BofA Securities analyst Vivek Arya maintained Nvidia with a Buy rating and price target of $1,500 following “positive” meetings in terms of demand and customer interest with Nvidia CFO Colette Kress, vice president of investor relations Simona Jankowski and director of investor relations Stewart Stecker.

The overall tone of the meetings was very positive given the company’s expanding customer interest, gated only by supply, the BofA analyst said.

“While supply constraints can oſten lead to double ordering, NVDA suggested very thoughtful planning by its customers,” Arya wrote in a new note to clients.

The analyst doesn’t see double ordering as an issue for Nvidia as there is large capex required to deploy generative AI versus traditional chip projects and customers have to secure land, power and other resources that take a lot of time and work before taking delivery.

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Arya acknowledged that Nvidia’s customer mix has moved “slightly” away from large cloud service providers, but the chipmaker is seeing strength in enterprise with companies like Tesla and for recommender engines from companies like Meta.

The BofA analyst sees Nvidia as “best positioned” to enable the IT industry to deliver AI services. Arya believes the Jensen Huang-led company has a multi-year lead in performance, pipeline, incumbency, scale and developer support over competitors Advanced Micro Devices Inc AMD and Intel Corp INTC.

“At any given point there are ~3 architecture teams working in parallel at NVDA. The first supporting the current product, the second working on next-gen, and the third the ‘visionaries’ working with supply chain (foundry, EDA, others) and customers to figure out what else can be made possible,” Arya said.

The analyst noted that Nvidia continues to lead in all major training/inference benchmarks and is accelerating its research and development expenses while competitors are cutting back.

Arya believes his $1,500 price target is justified given the stronger growth opportunities ahead for Nvidia and the potentially strong long-term demand trends for data center.

See Also: AMD ‘Could Easily Hit $200,’ Palantir Could Finally ‘Break Out’ – I-Bank CEO On Nvidia Stock Surge Plays

NVDA Price Action: Nvidia shares were up 2.17% at $30.68 at the time of publication, according to Benzinga Pro.

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