Bank of America announced on Thursday that it had raised its target price for Nvidia from $1,100 to $1,320 following last night's release of the AI processor manufacturer's quarterly results.
The research firm - which is maintaining its buy recommendation on the stock - points out that demand continues to outstrip supply, and expects this situation to persist well into 2025.
From his point of view, Nvidia is therefore in a position to control more than 80% of the AI gas pedal market, a segment he believes could reach a total of $100 billion this year, rising to $200 billion by 2027 and $300 billion by 2030.
Not only is Nvidia generating sales growth well ahead of other mega-caps (+262% in the first quarter), it also boasts a FCF conversion rate of over 57%," adds BofA.
At the current pace, Nvidia could post free cash flow (FCF) of $120 billion within two years and over $200 billion within three years', it concludes, pointing out that the stock is currently its 'top pick' within the sector.
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NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (55.9%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (44.1%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (55.6%), gaming (33.6%), professional visualization (5.7%), automotive (3.4%) and other (1.7%).
Net sales are distributed geographically as follows: the United States (30.7%), Taiwan (25.9%), China (21.5%) and other (21.9%).
NVIDIA CORPORATION 
