Nvidia Earns Outperform Rating from BMO Capital with $340 Price Target

Nvidia Corp., a leading developer of AI systems, has received an outperform rating from BMO Capital, which set a price target of $340. The firm cited Nvidia's position as a leader in complete AI systems, supported by its fully integrated technology stack.

Nvidia designs AI accelerators and builds full-rack AI systems for hyperscalers and cloud service providers. It has also made several strategic investments across leading AI companies. Demand remains robust with much of Nvidia's capacity sold out for the next 12-plus months, BMO Capital noted.

The firm praised Nvidia's strong financial profile, supported by healthy margins and cash flow generation. Nvidia posted a gross profit margin of 74% and revenue growth of 71% over the last twelve months, while trading at a P/E ratio of 33.2.