Nvidia Stock Predictions: Bank of America Raises Price Target to $150
Money | June 22, 2024, 6:43 a.m.
Nvidia's unprecedented rise in value has left investors wondering if anything can slow down the tech giant. Despite briefly surpassing Microsoft as the world's most valuable company, Nvidia's stock continues to climb, with a $1,000 investment a decade ago now worth nearly $300,000. Analysts at Bank of America remain bullish on Nvidia's future, citing the potential for further growth driven by GenAI hardware deployments and next-gen Blackwell AI accelerator systems. With a target price of $150 per share, they see the stock as compelling at a P/E of around 30, based on bullish earnings scenarios. However, not everyone shares this optimism. Some, like David Trainer of New Constructs, warn that Nvidia's current valuation is unsustainable and could be poised for a fall as competitors enter the market and margins inevitably shrink. The debate over Nvidia's future continues, with some believing in its unstoppable ascent while others caution against overly optimistic projections.