Bank of America on Tuesday maintained its Buy recommendation on Nvidia, with a price target of 1100 dollars, the day after the first announcements made at the GTC conference for AI developers.
While mentioning presentations in line with expectations, BofA says it is particularly interested in the launch of the new Blackwell 'superchip', whose performance exceeds that of the previous architecture, Hopper, by up to 30 times, by promoting the development of large language models (LLMs) based on trillions of parameters.
The analyst notes that no release date has yet been communicated, but declares that he expects all the giants of 'tech' and accelerated computing such as Microsoft (Azure), Amazon (AWS), Google (GCP) and Oracle (OCI) to adopt the platform when it comes to market, expected by the end of the year.
From a professional point of view, the GTC meeting confirmed Nvidia's ability to open the doors to new markets likely to be worth trillions of dollars.
More generally, BofA emphasizes that the chipmaker is consolidating its dominance in the AI segment by offering not only hardware, but also software and services.
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NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (55.9%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (44.1%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (55.6%), gaming (33.6%), professional visualization (5.7%), automotive (3.4%) and other (1.7%).
Net sales are distributed geographically as follows: the United States (30.7%), Taiwan (25.9%), China (21.5%) and other (21.9%).