Bank of America names Nvidia a leader in AI gold rush

According to Business Insider, Bank of America has named Nvidia as one of the top players in the race to become the leader in artificial intelligence (AI). The bank noted that Nvidia offers investors the opportunity to access the growing AI market, similar to how gold miners have been offered ready-made tools to find gold in the past. The bank advises investors not to bet on certain companies, but to focus on those who provide equipment for all players in this area. Nvidia builds and sells AI GPUs that are used to support the large language models used in conversational AI chatbots such as ChatGPT and Bard. This market is expected to grow to $60 billion by 2027, and Nvidia currently controls about 75% of this market. Bank of America believes Nvidia is well positioned to monetize in the AI race that's going on between Microsoft and Alphabet. However, while demand for Nvidia's H100 accelerator is growing, the company will face competition in the market and its share could shrink. However, Bank of America called Nvidia a "best bet" for investors and recommended buying its shares at a target price of $340, which represents upside potential of 19% from the current level.