Nvidia stock price is among the best performers so far this year because of the robust demand for its GPU and strong gaming industry fundamentals. The integration of Mellanox acquisition has been adding to its growth potential and investor’s sentiments.  

Its revenue soared 39% in the first quarter this year while the market pundits are seeing a similar growth trend for the second quarter.

Nvidia stock price rallied 73% this year, extending the twelve months gains to 160%. Its shares are currently trading around an all-time high of $420. Despite the recent rally, the analysts are seeing more upside ahead. For instance, BofA has provided a price target of $460 with a Buy rating.

NVDA NVIDIA Corporation daily Stock Chart

BofA analyst Vivek Arya said, “9% of PC gamers have a GPU on par with the performance of the upcoming next-gen game consoles, which will set a new bar for mainstream performance.”

“The new consoles could catalyze a major upgrade cycle for NVDA as users move to either Turing or 7nm Ampere, which Nvidia is expected to announce soon,” the analyst added.

Susquehanna analyst Christian Rolland is bullish about NVDA’s future fundamentals. The firm has provided a price target of $450 for Nvidia stock. The firm has raised the price target amid Mallonax acquisition, which they believe would add $20 to $30 billion of market cap to Nvidia over time.

Commenting on the gaming industry Nvidia CEO Jensen Huang said: “The top games in the world today are Fortnite, Minecraft, and Animal Crossing. All three games are Nvidia platforms … I think we have all the dynamics working in our favor.”

The company expects to generate substantial revenue growth in the coming quarters, which will also help it in improving its profitability and cash generation.