Nvidia (NVDA), with 95% of the market for graphics processing units, and rival Advanced Micro Devices (AMD) are poised to benefit with the “gaming upcycle still strong,” BofA Securities said Wednesday in a report on the semiconductor industry.
The firm reiterated its buy rating for both Nvidia and AMD with “significant growth” ahead for the data center accelerator market. Overall GPU market growth is likely to be sustained at 10% to 15% in 2024 and 2025, the report said.
“Data center GPU demand should remain at the forefront, with NVDA’s GTC kicking off on March 18,” BofA said, referring to the global artificial intelligence conference for developers. “Generative Artificial Intelligence will be the key theme, and we expect Nvidia to provide additional details on its roadmaps across accelerators and networking.”
BofA has price targets of $925 for Nvidia and $195 for AMD.
BofA expects Broadcom (AVGO) to provide details on its critical silicon/networking offerings at its Enabling AI in Infrastructure Investor meeting on March 20.
Shares of both Nvidia and Broadcom fell 0.4% in recent trading Wednesday, while AMD dropped 1%.