Nvidia Dominates Market, BofA Raises EPS Projections and Value Goal Amid Sturdy Free Money Circulation
NEW YORK, Oct. 17, 2024 With a commanding 80% to 85% share in a $400 billion complete addressable market, semiconductor large Nvidia (NVDA, Financials) retains dominating the enterprise, compelling BofA Securities to boost its EPS projections for the subsequent years.
From $2.81, BofA raised its EPS projection for Nvidia’s fiscal 12 months 2025 to $2.87; from $3.90, it raised its projection for 2026 to $4.47. Additionally, its 2027 projection, that’s anticipated to leap from $5.67 from $4.72, additionally represents an enormous bump. Other than the EPS modifications, BofA underlined its Purchase advice on Nvidia and raised its value goal from $165 to $190.
Furthermore, this week, the inventory has reached new highs, reflecting traders’ hope for the corporate’s future. Underneath the course of Vivek Arya, BofA analysts underscored Nvidia’s strong free money move (FCF), with margins at 45% to 50%, roughly double the Magazine-7 common of 23% to 25%. “In greenback phrases, NVDA may soak up $200 billion of FCF over the subsequent two years, rivaling Apple (AAPL) and offering progress optionality,” Arya said in a Thursday notice to traders.
This text first appeared on GuruFocus.
