Bank Of America Predicts NVIDIA, Its “Sector Top Pick,” Will Officially Launch AI PC Market Entry at CES

This article is not intended as investment advice. The author does not hold any positions in the stocks discussed herein.

NVIDIA’s Promising Start to 2024

NVIDIA dominated the tech landscape in 2024, with its significant market capitalization bolstering the entire market’s performance. Recent insights from Bank of America (BofA) analyst Vivek Arya suggest that NVIDIA is poised to recreate its impressive 2024 showing, as outlined in his latest investment commentary.

Upcoming CES: A Catalyst for NVIDIA

Although many of the major themes from NVIDIA’s keynote at the Consumer Electronics Show (CES) have been released to the public, Arya emphasizes that the event will still serve as a beneficial catalyst for NVIDIA’s stock:

“While the big themes have already been mentioned in the media ahead of the event, we still see CES as a positive catalyst, re-asserting NVDA’s platform dominance/opportunity in high-growth markets.”

Key Updates Anticipated at CES

During the CES tradeshow, Arya forecasts that NVIDIA will unveil key aspects of its robotics strategy, particularly the Jetson Thor platform designed for humanoid robots, which incorporates the rising trend of “physical AI.”Furthermore, he expects the debut of the RTX 50xx series, the gaming variants of its Blackwell GPU architecture, showcasing features such as enhanced “neural rendering”capabilities and accelerated GDDR7 memory.

Enhancements in Data Center and AI GPU Offerings

Arya also anticipates updates regarding NVIDIA’s data center and AI GPU lineup, including current models like Blackwell (GB200, B200) and the upcoming second-half upgrades (GB300, B300) that feature advanced memory configurations (up to 288GB via 12 stack High HBM 3E) to improve AI inference accuracy. Notably, a teaser for the next-generation Rubin architecture is also expected.

NVIDIA’s Possible Entry into the AI PC Market

Of particular importance is Arya’s expectation regarding NVIDIA’s potential entry into the AI PC market, likely through a partnership or possibly through a standalone CPU offering. This perspective aligns with insights from Truist Securities analyst Will Stein, who stated:

“We believe NVDA will announce a client-side CPU during 2025, opening up an additional ~$35B TAM.”

Investment Outlook

In light of these forthcoming developments at CES, Arya has reaffirmed a ‘Buy’ rating on NVIDIA’s shares, setting a target price of $190:

“Reiterate Buy on our sector top pick, Nvidia, ahead of CES tradeshow that starts Jan-6 with keynote and other events featuring NVDA CEO.”

Current Stock Performance

NVIDIA’s stock is presently trading at around $135 in pre-market activity. This represents a potential upside of approximately 40% when compared to Arya’s target price.

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