Bank of America: Product releases will accelerate, giving Nvidia a "buy" rating.

According to the Zhongtong Finance APP, Nvidia (NVDA.US) has performed well in the stock market in recent years. However, Vivek Arya, an analyst at Bank of America, believes that the future of the company is even brighter. This is because Nvidia has accelerated its product releases and strengthened its position relative to its competitors. Arya has given Nvidia a "buy" rating with a target price of $650.

He stated that based on Nvidia's updated product roadmap, the company may release chipsets for Arm training and inference, x86 training and inference, AI infrastructure, enterprise, and large-scale AI infrastructure in 2024 and 2025.

Furthermore, Arya believes that although the roadmap does not indicate the manufacturing nodes, Nvidia is likely to be one of the first companies to introduce 3nm or 2nm technology into AI accelerators. These smaller nanometer processors, known as cutting-edge processors, are more advanced than other processors.

Arya said, "Similar to Nvidia's strategy in the gaming field, the prices of Nvidia's products range from $50 to $1500. We believe that the disclosure of the new data center roadmap indicates that with the acceleration of the release pace, the breadth of products will continue to expand, making it increasingly difficult for commercial competitors..." Nvidia's competitors in the data center field include AMD (AMD.US) and Intel (INTC.US).

Although Nvidia and Intel are competitors in the data center market, Arya believes that Nvidia can consider Intel as a potential foundry partner, using its 18A manufacturing node, while still relying on TSMC (TSM.US) as its main foundry.

With the emergence of chatbots such as ChatGPT, generative AI has become a hot topic in the technology field this year. However, these applications and services require a large amount of computing power to power the large language models used to train them. Arya stated that this has led to a demand for "scale compute optimization."

Considering that Nvidia seems to have the potential to be ahead of its competitors, Arya believes that Nvidia's revenue generated from data centers may have room for growth in the next three calendar years, estimated to be approximately $42 billion, $70 billion, and $88 billion, respectively.

Nvidia is scheduled to release its third-quarter earnings report on November 21. Analysts generally expect the company's revenue to reach $15.89 billion, with earnings per share of $3.35.

As of the close of last Friday, Nvidia's stock price fell by 3.16% to $454.61.