**Bank of America Ups Nvidia Price Target, Highlights "Generational Opportunity"**

Bank of America has revised upward its price target for Nvidia, enhancing it from $165 to $190. This adjustment reflects a 40% potential upside from the current stock levels, underpinned by Nvidia’s commanding position in the AI chip market and anticipated growth fueled by AI advancements.

Analyst Vivek Arya, who regards Nvidia Corp. (NVDA) as the premier stock pick within the AI domain, has designated the company as a "generational opportunity." Arya has markedly increased Nvidia’s earnings forecasts for 2025 and 2026 by 13% to 20%, emphasizing the firm’s formidable competitive advantage, controlling an 80-85% share of the AI market. He projects that Nvidia could reach a total addressable market of over $400 billion by 2024, a figure that is four times larger than previous estimates.

Several industry developments have boosted Bank of America's optimistic view on Nvidia's long-term potential. These include positive earnings from suppliers such as Taiwan Semiconductor Company Ltd. (TSM) and insights from Advanced Micro Devices Inc. (AMD) AI event. Additionally, feedback from meetings with tech companies like Broadcom Inc. (AVGO) and Micron Technology Inc. (MU) has reinforced this confidence. Reports from TSMC indicate that demand for AI technologies is not only strong but expected to persist for years.

Nvidia's management has noted overwhelming demand for its next-generation Blackwell chips, describing it as "insane." Arya predicts extraordinary cash generation for Nvidia, with free cash flow potentially exceeding $200 billion over the next two years and profit margins reaching 45-50%. This margin is nearly double that of the average "Magnificent 7" tech stocks, which includes companies such as Apple Inc. (AAPL) and Microsoft Corp. (MSFT).

Furthermore, Arya suggests the market undervalues Nvidia’s expanding enterprise partnerships with firms like Accenture plc (ACN), ServiceNow Inc. (NOW), and Oracle Corp. (ORCL). Nvidia’s software offerings, including its Networking Interface Modules (NIMs), are pivotal in sustaining its dominance in AI infrastructure. These partnerships are poised to further propel expansion across various sectors.

Despite Nvidia’s robust growth prospects and market leadership, Arya believes the company’s valuation remains appealing. He estimates Nvidia’s price-to-earnings growth (PEG) ratio for 2025 to be just 0.6x, significantly lower than the 1.9x average for the "Magnificent 7" stocks. Nvidia shares saw a 0.84% increase on Friday, reaching $138, close to its record high of $140.89 set the day before.