Throughout 2024, there has been no shortage of positive forecasts for Nvidia (NASDAQ: NVDA), with analysts, on average, predicting the semiconductor giant is certain to grow to a valuation of at least $4 trillion in the coming months.
Judging by the first high-profile NVDA price target revision of 2025 – the one unleashed by Bank of America’s (NYSE: BAC) Vivek Arya already on January 2 – this year is poised to feature just as much optimism.
According to BofA, Nvidia remains not only a ‘buy’ but also the sector ‘top pick’ for the banking giant, with an admirable price target at $190 – 39.1% above the press time price of $136.59.
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Why Nvidia stock is BofA’s ‘top sector pick’ for 2025
As part of his revision, Arya drew attention to the upcoming Consumer Electronics Show (CES) – scheduled to start on January 7 – as a major catalyst and a ‘reminder’ of Nvidia’s continued industry dominance.
The analyst explained that the trade show is likely to feature numerous exciting developments, including the detailing of a ‘robotics strategy,’ the launch of the RTX 50xx series for gaming and boasting GDDR7 memory, the potential introduction of artificial intelligence (AI) personal computer (PC), and updates on current products such as the much-discussed Blackwell.
Cumulatively, the event and the expected presence of CEO Jensen Huang are likely to reignite the NVDA stock rally after a period of stagnation at the tail-end of 2024.
Despite its somewhat unique focus, Arya’s forecast for Nvidia is generally in line with other recent updates. As Finbold reported on December 31, all rating revisions made during the month have been positive, either featuring affirmations of a ‘buy’ rating, price target upgrades, or both.
Finally, it is worth pointing out that for all of Bank of America’s bullishness, its $190 price target is not the highest recent forecast. Truist Securities bumped its prediction from $169 to $204 in mid-December.
NVDA shares’ performance leaves room for enthusiasm and caution
Looking at Nvidia shares’ performance, the optimism appears more than justified. Even with the recent headwinds and several protracted periods of sideways trading during the year, NVDA stock remains 187.15% in the green in the 12-month chart.
Still, the $2 trillion valuation rise within a single year, despite providing ample upward momentum, does raise the question of how high the chipmaker can go before the gap between market capitalization and revenue begins catching up.
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