Nvidia (NVDA) remains a top pick as the "dominant leader" in artificial intelligence for areas including initial and specialized training, making predictions and robotics, BofA Securities said Thursday in a report.
BofA boosted the price target on Nvidia stock to $200 from $190 and reiterated its buy rating.
The company on Wednesday reported fiscal Q4 sales rose 78% from a year earlier and forecast Q1 revenue of $43 billion, up 66%, even amid headwinds such as the emergence of AI startup DeepSeek and export restrictions to China, BofA said.
Revenue in Q4 included almost $11 billion of sales of Blackwell chips versus estimates of $4 billion to $7 billion, offering reassurance that "the product is on track," the report said.
The cost of ramping up Blackwell pushed gross margins lower with a recovery expected in H2, BofA said.
Nvidia shares fell 3.7% in recent Thursday trading.
Price: 125.99, Change: -5.29, Percent Change: -4.03
