Nvidia stock rises on Bank of America price target boost

Shares of Nvidia (NVDA) are trending higher after Bank of America analysts boosted the chipmaker's price target to $800 from $700 per share, while maintaining a Buy rating on the stock. The more bullish outlook comes ahead of Nvidia's upcoming earnings report due out on February 21. Bank of America analysts expect the company to deliver results exceeding current expectations.

Yahoo Finance's Julie Hyman and Jared Blikre break down the details of this trending ticker.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

JULIE HYMAN: Top trending tickers. We mentioned it in passing earlier, NVIDIA shares are jumping by almost 5%. Bank of America raising its price target to $800 a share with expectations the chip maker is going to top earnings expectations later this month.

It doesn't report until February 21. So just when everybody sort of calms down a little bit from earnings season, then you get the big NVIDIA report. And they're talking a lot about the dominance, that is the analysts over at Bank of America, that NVIDIA has an AI inference in the chips, the power, all of this learning that AI is doing effectively.

They said, "We expect NVIDIA to hold a 90% share in training and achieve a more than 50% share in inference," so still. And I think Bank of America is probably not alone here. There are a lot of folks we've talked to who say NVIDIA is just still going to dominate in this area.

JARED BLIKRE: Yeah, and then the question is then, how much more dominance-- how much more dominant can they become? They already have a huge market share of the bleeding edge here. And then Bank of America, I think they're kind of not walking back. But they're mitigating some of their very bullish comments saying while NVIDIA's upcoming results may show a smaller upside surprise in past quarters and perhaps disappoint some bulls, the more measured pace will also be seen as creating a more fertile ground for continued growth.

So they're looking at it as a positive that we're not going to see this explosive growth in the interim, that they're going to take a more measured pace. And we'll have to see how that pans out there. But nevertheless, NVIDIA up 33%. I was just looking at this on the Wi-Fi interactive, just this year alone. Reminds me of last year.