Nvidia stock has another 24% to climb as it looks poised to dominate the computing market for the next decade, Bank of America says

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Nvidia, the leading graphics processing unit (GPU) manufacturer, has been on a tear in recent years, with its stock price more than tripling since 2020. And according to Bank of America, the company’s upward trajectory is far from over. In a recent research note, the bank’s analysts predicted that Nvidia’s stock has another 24% to climb, driven by its dominance in the computing market for the next decade.

The bank’s bullish outlook is based on Nvidia’s strong position in several key areas, including artificial intelligence (AI), gaming, and datacenter computing. The company’s GPUs have become the de facto standard for AI computing, and its deep learning frameworks are used by researchers and developers around the world. Additionally, Nvidia’s gaming business continues to thrive, with its GeForce GPUs remaining the top choice for gamers.

But it’s Nvidia’s datacenter business that holds the most promise, according to Bank of America. The company’s datacenter revenue has been growing at a rapid pace, driven by the increasing adoption of cloud computing and the need for more powerful processing capabilities. With the rise of edge computing and the Internet of Things (IoT), Nvidia’s datacenter business is poised to continue its upward trajectory.

Bank of America’s analysts also pointed to Nvidia’s strong balance sheet and cash flow generation, which will enable the company to invest in research and development and make strategic acquisitions to further solidify its position in the market. The bank’s price target of $350 per share, which represents a 24% upside from current levels, is based on a multiple of 35 times forward earnings, which is in line with the company’s historical average.

Overall, Bank of America’s bullish call on Nvidia is a testament to the company’s innovative products, strong execution, and dominant position in the computing market. With its stock price still trading at a relatively reasonable valuation, investors may want to consider adding Nvidia to their portfolios for the long haul.

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