Bank of America keeps Nvidia stock as Top Pick heading into CES next week by Investing.com

Investing.com — Bank of America analysts on Wednesday reiterated Nvidia (NASDAQ: ) stock as their top pick ahead of the January 6th Consumer Electronics Show (CES). Nvidia CEO Jensen Huang is set to deliver his keynote during the event.

“While the major themes have already been mentioned in the media ahead of the event, we still see CES as a positive catalyst that reiterates NVDA’s platform dominance/opportunity in high-growth markets,” BofA analysts led by Vivek Arya said in the paper. note.

Analysts are particularly interested in several potential updates from Nvidia at CES. These include the company’s robotics strategy involving the Jetson Thor platform, the launch of the RTX 50xx, Blackwell variants of PC gaming cards, a possible venture into the AI ​​PC market through a partnership or a standalone PC CPU, and updates on data center technology including current and next generation products.

Nvidia’s expected 50%+ year-over-year sales growth in calendar year 2025 could position it as the fastest growing in , BofA notes, citing current consensus estimates.

The firm also sees a potential continuation of over 20% sales growth into the following year as Nvidia expands its reach into enterprise and sovereign deployments. Despite a price-to-earnings (PE) ratio trading above the S&P 500 average, BofA considers Nvidia’s stock to be attractively priced, especially given its growth prospects.

“Historically, NVDA stock has traded between 25x-35x forward PE range, and therefore currently trades at 30x attractively within the middle of the valuation range, in our view,” analysts said.

The push into robotics is seen as a significant step for Nvidia, leveraging its extensive capabilities from silicon to software. However, BofA recognizes the challenges of creating reliable, affordable and widespread robotics products that can generate credible business models.

“From that perspective, robotics could remain another cool but niche option such as the metaverse or autonomous cars,” analysts wrote. “So while we don’t doubt NVDA’s capabilities, we are uncertain when and how quickly they might impact NVDA’s finances.”

Finally, analysts expect CES to provide reassuring updates on Nvidia’s Blackwell shipments and the next-generation variants optimized for AI inference, as well as a potential accelerated timeline for the Rubin project. These updates are considered essential for Nvidia to address market and company-specific issues that have affected the company’s stock performance over the past six months.