• Bank of America analysts raised their price goal for Nvidia stock to $190 a share this week.

• They see the AI market growing to $400 billion, giving Nvidia a “generational opportunity.”

• They point to Nvidia’s strong lead amongst competitors, helped by its enterprise partnerships.

Nvidia stock has been on a tear all yr, but investors can brace for much more gains ahead, Bank of America analysts say.

In a Thursday note, the analysts raised their price objective on the stock from $165 to $190. That suggests a 38% upside from its price of about $138 a share at midday on Friday.

The analysts point to exponential growth within the AI market in the approaching years, which they are saying will give Nvidia a “generational opportunity” because the chip titan continues to strengthen its lead out there.

The analysts see the AI accelerator market growing to $280 billion by 2027, and toward upwards of $400 billion over time — marking huge growth from $45 billion in 2023.

As AI models proceed to grow rapidly—with developers like OpenAI, Google, and Meta launching latest large language models several times per yr—the necessity for computing will only grow, the analysts predict.

Each latest major LLM generation, especially those developed for larger size and higher reasoning capabilities, would require greater training intensity, they add.

“We proceed to see the pace of latest model development increase. LLMs specifically are being developed for each larger size and higher reasoning capabilities, which each require greater training intensity,” the analysts said.

Additionally they point to Nvidia’s strong partnerships with enterprise customers like Accenture, ServiceNow, Oracle, and others, which show the growing presence of AI at big firms and Nvidia’s role as partner of selection.

“NVDA’s engagements span multiple verticals (e.g., Accenture, ServiceNow, Microsoft), and offerings akin to AI Foundry, AI Hubs, NIMs are key levers to its AI leadership, not only on the hardware side but in addition on systems/ecosystems side,” the analysts said.

The analysts also said Nvidia’s financials are arrange well for future gains. Given its free money flow generation at 45%-50% margins, which is sort of double that of other Magnificent 7 stocks, Nvidia will have the opportunity to generate $200 billion in free money flow over the following two years, they wrote.

Nvidia’s stock has skyrocketed this yr, up 187% as AI continues to boom after a transient sell-off over the summer. The sector has since recovered, with chip stocks like Nvidia and TSMC trading at or near all-time highs in recent weeks.

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