Shares of NVIDIA (NASDAQ:NVDA) climbed on Friday following positive analyst commentary. As of 1:30 p.m. EDT today, the chipmaker's stock price was up more than 2%.
Bank of America analyst Vivek Arya affirmed his buy rating on NVIDIA and increased his price estimate from $800 to $900. His new target represents potential gains to investors of more than 18% from the semiconductor stock's current price near $762.
Increased demand for artificial intelligence (AI) technology in markets such as cloud computing and telecommunications could allow NVIDIA to triple its data center revenue over the next half-decade, according to Arya. Specifically, he sees NVIDIA's data center sales expanding by 35% annually to $30 billion by 2025.
NVIDIA is benefiting from several powerful trends. Its chips are being increasingly used in a wide array of industries, as more businesses adopt AI and other advanced technologies. The rapid growth of the cloud and edge computing markets is also fueling demand for NVIDIA's products. And new markets, such as self-driving vehicles, 5G, and robotics, are set to propel the chipmaker's growth in the coming years.
With its intriguing long-term expansion prospects, it's not surprising that Arya named NVIDIA his top computing pick. If you agree, consider buying some shares of this tech leader today.