BofA Reiterates Buy Rating on NVIDIA Corporation, Keeps PT at $235

NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Best AI Stocks to Buy According to Goldman Sachs. On September 22, BofA reiterated its Buy rating on NVIDIA Corporation (NASDAQ:NVDA), keeping the price target at $235.

Vivek Arya from BofA retained the rating on NVDA following the company’s plan to invest $100 billion in OpenAI. The analyst remains optimistic on NVIDIA as he believes that this investment will yield a significant return on investment, potentially returning $300 to $500 billion in revenue over time. This investment positions NVIDIA to be a key strategic compute and networking partner of OpenAI, enhancing its competitive advantage over its peers, such as Broadcom and AMD.

Moreover, NVIDIA Corporation’s (NASDAQ:NVDA) strong positioning in the rapidly growing AI sector, driven by a compelling valuation, supports Arya’s Overweight rating on the stock. The company’s robust FCF margins and major investments in the ecosystem are projected to expand its addressable market and accelerate product development in AI, adding to its growth prospects. NVIDIA’s CEO Jensen Huang has mentioned on several occasions that the investors have confidence in the company’s future to strengthen its supply chain partners.

NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It stands at the center stage of this AI era as the company’s Compute & Networking segment offers its Data Center, driven by computing platforms, AI solutions, and software.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.