Bank of America says Nvidia stock can go up another 26% amid AI

Per Business Insider

The Bank of America has recently commented on Nvidia's position and how its stock could go up by another 26%. This comes as the company has cemented its place in AI by focusing on the software, silicon, and more.

Bank of America: "Nvidia [is] uniquely positioned with a full-stack of AI silicon, software, scale, supply and developer ecosystem"

The bank reportedly gave Nvidia stock a "Buy" rating, which increased its price even more. Year-to-date, the company has already experienced a really of 170%, as the demand for AI-related tech has increased.

The company recently unveiled its DGX GH200 AI supercomputer, which would further AI capabilities and will first be used by Microsoft, Meta Platforms, and Alphabet.

Bank of America: "AI upside is driving strong performance year-to-date, but we believe we are only at the start of the story. Only ~15% of cloud servers are accelerated today, becoming more essential as GPUs are required for proper training of LLMs,"

Nvidia's position comes as there were reportedly over 1,600 generative AI startup companies. The bank commented on how Nvidia offers a full-stack platform, contributing to its success.

The full-stack platform merges the hardware and software abilities needed for generative artificial intelligence.

Amid the rally, Nvidia became the first chipmaker to ever hit a market valuation of over $1 trillion. This comes as the company benefited from the surge in AI.

It was noted that Nvidia's growth comes as the company experienced increased demand for AI chips as more industries are trying to invest heavily into AI and other related services. While Nvidia hit $1 trillion, the second-largest chipmaker only hit a market value of just around half of that.

The CEO of Nvidia believes that AI means that all people need to do to become computer programmers is to speak to a computer.

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