BofA Sees $170B AI CPU Market by 2030, Raises Nvidia Target
Bank of America raised its price target for Nvidia (NVDA) to $165, forecasting the AI CPU market to reach $170 billion by 2030, with the new Vera CPU competing against AMD's offerings.
Key Numbers
Bank of America (BofA) analysts raised their price target for NVIDIA (NVDA) from $150 to $165, maintaining a "Buy" rating. The revision comes as the bank forecasts the AI CPU market to reach $170 billion by 2030.
Recommendation Change
- Previous Price Target: $150
- New Price Target: $165
- Rating: Buy
Analyst Rationale
The analyst believes Nvidia's upcoming Vera CPU will strongly compete with AMD (AMD) processors in the data center market. BofA expects Nvidia to capture about 75% of the AI CPU market by 2030, while AMD takes 15%. The bank also raised AMD's price target to $180.
Context
The analysis follows Nvidia's announcement of the Vera CPU at Computex, which is expected to double the performance of its predecessor. AMD also announced its competing MI400 processors. Nvidia shares rose 2.3% in pre-market trading.
What to Make of It
The outlook reflects analyst confidence in Nvidia's continued dominance in AI, but competition with AMD may intensify. Investors should monitor market developments and assess risks.
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