Bank of America (BAC, Financial) is doubling down on Nvidia (NVDA, Financial), calling it their "Top Pick" ahead of the highly anticipated Consumer Electronics Show (CES) on January 6. CEO Jensen Huang's keynote promises to deliver updates that could set the stage for Nvidia's next big moves. Analysts are buzzing about potential reveals, like the RTX 50xx GPUs, advancements in the Blackwell platform for PC gaming, and a bold step into AI PCs—either through partnerships or a standalone product. Oh, and don't forget about the Rubin platform teaser for 2026. It's all adding up to what could be a game-changing year for the chipmaker.
Here's why investors should care: Nvidia is on track for a jaw-dropping 50%+ sales growth in 2025, with another 20% growth likely in 2026. And while it's trading at a 30x forward price-earnings (PE) ratio—right in the middle of its historical range—BofA says it's still a steal considering the company's explosive growth potential. Robotics is another exciting frontier for Nvidia. The Jetson Thor platform could be a game-changer, but scaling it up profitably remains a challenge. Still, whether it's AI, gaming, or enterprise tech, Nvidia's innovation from silicon to software keeps widening its moat.
Investors are already catching the vibe. Nvidia's shares climbed 1.7% in premarket trading on Thursday. CES is expected to calm nerves with updates on Blackwell shipments and the Rubin timeline—issues that have lingered over the stock in recent months. With BofA setting a $190 price target and big expectations for Huang's keynote, Nvidia is more than just a stock—it's the semiconductor play of the year.
