BofA Says Nvidia (NVDA) GPUs Remain a Full Generation Ahead of Rivals

NVIDIA Corporation (NASDAQ:NVDA) is 1 of the AI Stocks successful the Spotlight for Investors. On December 11, BofA Securities expert Vivek Arya reiterated a Buy standing connected the banal with a $275.00 terms target.

The slope believes that Nvidia shares stay compelling astatine existent levels owed to its unmatched leadership, semipermanent visibility, and borderline durability.

The steadfast hosted Nvidia’s Investor Relations typical Toshiya Hari for a virtual capitalist meeting, during which respective cardinal takeaways were highlighted. First, the steadfast noted however Nvidia’s GPUs are a “full procreation up of competition.”

Current disposable GPU-based LLMs were trained connected aged Hopper architecture alternatively of Blackwell (LLMs to beryllium disposable successful aboriginal 2026), which offers 10x–15x amended generation-over-generation performance.

Second, the expert noted that the next-generation Vera Rubin is connected way for 2H26 and determination are nary changes to roadmap. Pre-fill inference CPX mentation besides remains scheduled for Q4 2026.

Demand for the institution remains broad-based, led by important and increasing customers specified arsenic Google. Major exemplary builders besides proceed to trust connected Nvidia for training.

The institution besides enjoys some request and proviso visibility into a $500B income outlook successful CY25-26 “at the minimum” on with incremental OpenAI/Anthropic partnerships.

The steadfast further highlighted Nvidia’s co-design with customers, with an end-to-end level of CPUs, GPUs, scale-up, scale-out, scale-across, and bundle arsenic its cardinal competitory moat, stating that it is thing nary 1 other tin replicate.

While the interaction of caller export support for the H200s is excessively aboriginal to assess, the steadfast noted that the mid-70% GM outlook remains unchanged contempt rising representation costs.

“Meanwhile, we proceed to judge valuation astatine 25x/19x CY26E/27E PE remains compelling fixed it represents conscionable ~0.5x net maturation complaint versus broader Mag-7 and maturation peers astatine ~2x.”

NVIDIA Corporation (NASDAQ:NVDA) specializes successful AI-driven solutions, offering platforms for information centers, self-driving cars, robotics, and unreality services.

While we admit the imaginable of NVDA arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.