Nvidia Corp (NASDAQ:NVDA, ETR:NVD) has earned a repeat ‘Buy’ rating from analysts at Bank of America following its GTC Conference earlier this week.
Analysts continue to view Nvidia as a top pick following the GTC 2025 financial analyst Q&A session, which focused on Nvidia’s growing total addressable market (TAM) beyond cloud service providers (CSPs) to enterprises and physical AI applications.
Enterprises are expected to drive growth through “AI factories,” which are modular, scalable infrastructure solutions designed to meet growing demand for inference and training compute.
Nvidia sees a significant opportunity in this space, estimating a $500 billion TAM for IT services and a $50 trillion TAM for robotics and physical AI applications.
The bank’s analysts highlighted Nvidia’s Blackwell platform, which marked the company’s fastest product ramp to date.
Continued AI investment
With 3.6 million GPUs and 1.8 million packages shipped or ordered from major CSPs, Blackwell’s adoption highlights the continued investment in AI infrastructure, they noted.
Nvidia’s modular systems like DGX Spark and DGX Station are expected to play a key role in these sectors.
“Nvidia’s ability to drive generational leaps in performance while executing a product-cycle cadence at a one-year rhythm compounds its competitive edge,” analysts wrote.
Gross margins, currently at 71%, may improve as manufacturing costs decline and yields rise throughout the product ramp, Bank of America added.
“As future products build upon the current Grace Blackwell and NVLink 72 architecture, we suspect incremental chances to expand gross margins over the next 3 to 3.5 years until the next major design transition,” they wrote.
The analysts awarded Nvidia a $200 price target. Shares traded hands at about $117 on Friday.