Is it advisable to purchase Nvidia stock at this time? Many investors believe that this could be a once-in-a-lifetime opportunity. Nvidia has emerged as one of the most closely watched and hyped equities in recent memory, with the broader market increasingly reliant on the success of the AI chip leader.

The stock’s meteoric rise this year has been nothing short of remarkable. At one point, Nvidia was responsible for over one-third of the S&P 500’s gains. Investors even went as far as organizing watch parties to eagerly await Nvidia’s earnings release.

With Nvidia’s market capitalization recently hitting the $3 trillion mark, it has sparked some controversy. Some experts on Wall Street have questioned whether the stock can sustain its momentum, while others believe that the AI boom will only propel further growth.

Given this backdrop, investors are left wondering whether to scoop up Nvidia stock or offload it. But Bank of America analysts have a resounding answer. In a note issued recently, they reiterated their buy rating on Nvidia stock and raised their price target to $190 from $165. This implies a potential upside of 38% from the previous day’s closing price.

Should Nvidia hit the $190 mark, its market capitalization would soar to $4.7 trillion from the current $3.4 trillion level. BofA’s bullishness on Nvidia is such that they are labeling it as a “generational opportunity”. They see a total addressable market of over $400 billion for AI accelerators, underscoring the vast growth potential ahead.

Analysts point to the evolving demand for AI models, with new LLM model launches occurring 3-5 times per developer annually. Each new significant generation requires a 10-20x boost in compute requirements for training. This ongoing demand has also been echoed by executives from Broadcom, Micron, and AMD, injecting further confidence into Nvidia’s future prospects.

Moreover, Nvidia’s CEO, Jensen Huang, has underscored the unprecedented demand for the company’s next-gen AI processor. In a recent CNBC interview, he mentioned that their Blackwell processor is in full production, with demand reaching unprecedented levels. This only underscores Nvidia’s leadership position in the AI space.

BofA’s positive outlook on Nvidia also factors in the company’s software offerings, which complement its hardware dominance. Additionally, Nvidia’s enterprise partnerships with Accenture, ServiceNow, Microsoft, and other organizations contribute to building a robust ecosystem for AI solutions.

The potential for Nvidia to generate over $200 billion in free cash flow over the next couple of years is another compelling aspect. This figure puts Nvidia in the same league as tech giants like Apple. Further insights into the demand for AI technologies are expected with earnings reports from Microsoft, Google, and Amazon slated for release later this month. Nvidia’s own earnings report on November 20 will also shed more light on its performance.

Though there are skeptics on Wall Street who question the impact of heavy AI investments on profitability, the tech sector is witnessing intense competition to lead in AI innovations. BofA notes, “The pace of new model development is continuing to accelerate, particularly with LLMs evolving to enhance reasoning capabilities and increase size, requiring higher training intensity.”

As investors weigh their options, the consensus seems to be leaning towards a bullish outlook on Nvidia. With its strong position in the AI market, robust product lineup, and growing ecosystem of partnerships, Nvidia appears poised for further growth. This could indeed be a rare opportunity for investors looking to tap into the future of AI technology.