Despite the fact that $NVIDIA (NVDA.US)$ The stock has been rising for most of the year, but analysts from Bank of America recently indicated that they expect the stock to continue to rise, so investors can prepare for this.

In a recent report, Bank of America analysts have raised Nvidia's stock target price from $165 to $190. This means the stock can still rise by 38% from its price of $138 at the close of last Friday.

Bank of America analysts point out that the artificial intelligence market will experience exponential growth in the coming years, stating that as this chip giant continues to solidify its leading position in the market, this will bring Nvidia a "generational opportunity".

Analysts believe that by 2027, the artificial intelligence accelerator market will grow to $280 billion. Moreover, over time, it will further increase to over $400 billion, a significant growth from $45 billion in 2023.

Bank of America predicts that with the continued rapid growth of artificial intelligence models - developers like OpenAI, Google, Meta, and others will introduce several new large language models every year, leading to an increasing demand for computation.

Analysts also add that each new generation of large language models (LLMs), especially those developed for larger scale and better reasoning capabilities, require greater training intensity.

"We continue to see the pace of new model development accelerate. Especially, LLMs are being developed on a larger scale with better reasoning capabilities, both requiring greater training intensity," the report said.

They also pointed out that Nvidia has established strong partnerships with Accenture, ServiceNow, Oracle, and other corporate clients, indicating the increasing presence of artificial intelligence in large companies, with Nvidia's role as a preferred partner becoming more and more important.

"Nvidia's business spans multiple verticals (such as Accenture, ServiceNow, Microsoft), and products like AI Foundry, AI Hubs, NIMs are key levers of its leadership in artificial intelligence, not only in hardware, but also in the system/ecosystem aspect," the report stated.

Finally, Bank of America analysts also stated that Nvidia's financial situation is well prepared for future growth. They wrote that considering Nvidia's free cash flow profit margin of 45-50%, almost double that of other 'Magnificent 7' technology giants, Nvidia will be able to generate $200 billion in free cash flow over the next two years.

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