Anusuya Lahiri
3 min read
In This Article:
BofA Securities analyst Vivek Arya maintained a Buy rating on Nvidia Corp. (NASDAQ:NVDA) with a price forecast of $160 on Monday.
Arya listened to Nvidia CEO’s Computex 2025 keynote and then had a chance to virtually catch up with management (CFO) after the event.
The analyst highlighted Nvidia’s expanding portfolio, TAM (Total Addressable Market) expansion with the new NVLINK Fusion, rack-scale in full production, RTX Pro enterprise server, and sovereign AI buildout.
Nvidia Arya’s top sector pick. The company’s expanding portfolio implies a broad set of AI products across cloud, enterprise, humanoid robots, workstations, gaming, software libraries, quantum, and 6G, all underlying what Nvidia referred to as a “multi-trillion dollar AI factory” industry, per the analyst.
He noted that TAM expansion with the new NVLINK Fusion opened Nvidia’s proprietary interconnect and networking tech to third-party custom accelerators (ASICs) and CPUs.
Arya is highly confident in rack-scale GB200 NVL 72 Blackwell Systems, and the transition path to next-gen Blackwell Ultra GB300 systems will be easier from the third quarter.
The analyst said the RTX Pro enterprise server extends AI into the enterprise, causing more competition for legacy x86.
He also highlighted some benefits from last week’s Middle-East deals in the second half of 2025, though more benefits will be seen from 2026 onward (a 5-year project), given the time required to set up new infrastructure.
As per Arya, the next significant catalyst is the fiscal first-quarter earnings call, which could be contentious, related to recent restrictions on China H20 shipments.
As per the analyst, Nvidia’s key differentiators include its ability to expand its addressable market across multiple vectors of silicon, systems, software, and services, drive scale with global supply-chain partners, and solid balance sheet to make strategic investments in the ecosystem.
With NVLInk Fusion, Nvidia can provide its proprietary interconnect fabric and switch (Spectrum) to cloud service providers for use as chiplet in systems with (modified) third-party ASICs (from partners Marvell Technology, Inc. (NASDAQ: MRVL)) or extend the integration of Nvidia GPU with other Arm Holdings (NASDAQ:ARM)-based CPU (Qualcomm Inc. (NASDAQ: QCOM)) Arya noted. Separately, Nvidia launched Grace CPU C1, a new single-socket CPU for power efficient edge, telco, and storage systems, competing against rival x86 products from Intel Corp. (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD), he added.
