Nvidia backed by Bank of America as analysts see AI leadership supporting further growth - Proactive financial news

Bank of America reiterated its 'Buy' rating on NVIDIA, citing the company's strong leadership in AI infrastructure as a key driver for future growth. Despite concerns such as margin pressure, competit... Read original →

Bank of America’s reaffirmed 'Buy' rating underscores NVIDIA’s entrenched dominance in AI infrastructure. Technically, Blackwell and the upcoming Rubin platform’s reliance on HBM4 will tighten memory supply, boosting SK Hynix and Micron’s pricing power while directing more TSMC CoWoS capacity toward NVIDIA. On compliance, U.S. export controls shield NVIDIA short-term but accelerate China’s domestic AI chip ecosystem—eroding NVIDIA’s pricing leverage in non-restricted Asia-Pacific markets long-term. Despite custom chips from Amazon and Meta, CUDA’s software moat remains formidable, though gross margins near 70% are nearing physical limits. Over the next 12–24 months, tighter U.S. export rules post-election and rising HBM costs may force NVIDIA to pivot toward chiplet-based designs to sustain its ~65% share of AI capex.