TECH - Nvidia's Data Center Dominance and AMD's Rising Share Foretell Bullish Future: BofA Analyst | Benzinga
BofA Securities analyst Vivek Arya reiterated a Buy rating on Nvidia Corp (NASDAQ:NVDA) with a price target of $925. The analyst maintained a Buy rating on Advanced Micro Devices, Inc (NASDAQ:AMD) with a price target of $195. Both stocks are trading lower on Wednesday.
The analyst said that Nvidia holds a dominant position in the $85 billion+ accelerator market, with its leadership in the data center sector driving the majority of its sales.
Data center sales will likely exceed 85% of Nvidia’s total sales, a significant increase from about 25% five years ago and around 50% for AMD, up from 10%-15%.
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Despite limited visibility into data center GPU ordering trends, key takeaways include Nvidia’s nearly 95% market share in GPU silicon units, which surpassed 900k units in the fourth ...