Analyst Ambrish Srivastava also raised the company's price target to $425 from $285. The new price target represents a potential upside of 25% from the stock's previous closing price.
Nvidia shares were up 2.6% to $348.51 on Monday morning.
BMO is bullish on Nvidia's move towards genomics as the "compute landscape" has shifted over the last two to three years.
"While the CPU will always be an important part of the solution, the GPU, and specifically what NVIDIA has done with its GPU along with its software architecture, positions the company uniquely to be the prime beneficiary as we look over the next five years or so. We also believe the acquisition of Mellanox makes NVIDIA an even more formidable presence in the data center market," Srivastava said.
Nvidia has built a strong business in a short period of time since it started targeting the datacenter market, according to BMO's note.
That burgeoning market makes Nvidia an even more attractive play ahead of its earnings. BMO increased its annual datacenter revenue run rate forecast to at least $20 billion from $4.8 billion in 2020.
"Our view is that the company’s execution and its latest release of its datacenter suite of products suggests the software and hardware moat the company has created is getting deeper and wider," Srivastava said. "This is particularly, true, in our view, as we head into an era of compute that is opening an opportunity in acceleration for NVIDIA."