According to the Zhitong Finance APP, Bank of America pointed out that NVIDIA (NVDA.US) recently hit a historical high in stock price, but still has the potential for further growth as this chip manufacturer is expected to dominate the computing market in the coming years.
In a report released on June 5th (Wednesday), the bank reiterated its &#34;buy&#34; rating on NVIDIA stock and stated that the company led by Huang Renxun remains the top choice in the IT industry. The bank's strategist set a target price of $1,500 per share for NVIDIA within the next 12 months, implying a 24% upside potential from Thursday morning's trading price.
&#34;NVIDIA has the best ability to provide AI services in the $3 trillion IT industry. Despite competitors (such as AMD, Intel, and custom chip or ASIC) claiming to have the ability to provide AI services, we believe NVIDIA still leads by many years in terms of performance, channels, occupancy, scale, and developer support,&#34; the strategist stated in the report.
The bank's senior semiconductor analyst Vivek Arya added that he believes NVIDIA will dominate the computer market in the next decade. Arya stated, &#34;This is because the IT industry is undergoing 'decades-long infrastructure upgrade cycles,' and the market is witnessing the beginning of the next decade cycle.&#34;
He mentioned this week, &#34;We believe annual spending could be between $250 billion and $500 billion, with NVIDIA in a leading position.&#34;
Since OpenAI released ChatGPT and sparked an artificial intelligence competition, NVIDIA's stock price has been consistently strong over the past 18 months. In providing support for artificial intelligence models that attract consumers and Wall Street investors' attention, NVIDIA's chips are almost the only choice.
On Wednesday, NVIDIA's stock price hit a new high, surpassing Apple (AAPL.US) to become the world's second most valuable company.
NVIDIA's stock will undergo a 10-for-1 split on Friday, a move that could serve as a catalyst for further upside as the lower stock price helps attract more attention from retail investors.
While bearish forecasts for NVIDIA are rare, some analysts doubt whether the company can maintain its rapid growth momentum. Analysts caution that there is a risk of a significant decline in NVIDIA's stock price in the future due to weakening demand in the GPU market and increasing competition

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Bank of America believes that NVIDIA's stock price recently hit a historic high, but still has upside potential, and predicts that NVIDIA will dominate the computer market in the next decade. NVIDIA's stock will undergo a 10-for-1 split on Friday, which is expected to attract more retail investors' attention. Although some analysts doubt whether NVIDIA can maintain its growth momentum, the company is almost the only choice in providing support for artificial intelligence models. On Wednesday, NVIDIA's stock price hit a new high, becoming the second highest market capitalization company globally

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A $3 trillion market value is not enough! Bank of America: NVIDIA still has upside potential