$NVDA BOOM
$NVDA PT Raised to $190 at BofA Securities, 'Generational opportunity'
We reiterate our Buy, raise our CY25/26 pf-EPS est. by 13%-20%, and lift our PT to $190 from $165 (unch. CY25E 42x PE) on top AI pick NVDA. Our confidence in NVDA’s competitive lead (80-85% mkt. share) and generational opportunity ($400bn+ TAM, 4x+ vs. CY24) is boosted by: (1) recent industry events (TSMC results, AMD AI event, our meetings with AVGO, MU, optical experts, launch pace of large language models, capex commentary from top hyperscalers and NVDA mgt. re “insane Blackwell demand”); (2) NVDA’s underappreciated enterprise partnerships (Accenture, ServiceNow, Oracle, etc.) and software offerings (NIMs); and (3) ability to generate $200bn in FCF over the next two years. Meanwhile, in our view, NVDA’s valuation remains compelling at just 0.6x CY25E PE to YoY EPS growth-rate or PEG, well below “Mag-7” avg. of 1.9x. Data from the BofA strategy team suggests NVDA is broadly owned but only ~1x mkt. weighted in active portfolios.