This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) has emerged as BMO's preferred name among a newly covered group of semiconductor stocks, with the bank setting a $340 price target and an Outperform rating in a research report dated Aug. 21.
The call comes as Nvidia prepares for the next phase of its AI infrastructure roadmap. BMO expects the Vera Rubin NVL72 platform to enter production during the second half of the year, adding another potential driver to the company's data-center business.
Warning! GuruFocus has detected 4 Warning Signs with NVDA.
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BMO's valuation view also stands out. The firm estimates Nvidia is valued at roughly 18 times forward earnings while forecasting revenue growth of 84% in fiscal 2027 and 50% in fiscal 2028.
BMO's $340 target suggests the bank sees room for further gains as Nvidia advances its next-generation AI platform.
Shares of NVDA remained down 0.5% in Friday trading.