The move follows the Santa Clara, Calif., graphics-chip company’s agreement to buy SoftBank Group’s Arm unit for $40 billion.
Gill also affirmed his buy rating on Nvidia.
The shares recently traded at $531.38, up 3.2%. They had more than doubled in 2020 through Monday.
Nvidia's deal for Arm “will create the leading artificial-intelligence computing platform in the semiconductor industry," Gill said in a commentary.
He expects the acquisition to add to Nvidia’s 2022 earnings, labeling the result “significant, once revenue growth accelerates.”
To be sure, Gill also told CNBC that the deal is a "risky move," as regulatory restraints are possible.
Other analysts presented cautiously optimistic views, too. “We believe the strategic and financial rationale is sound but also view regulatory risks as high,” J.P. Morgan analyst Harlan Sur wrote in a commentary.
“[The] strategic fit is sound with its dual-prong strategy of boosting its data-center presence and market expansion into adjacent compute end markets.”
Gill has an overweight rating on Nvidia, with a share-price target of $510.
Morgan Stanley analyst Joseph Moore said “it will take time to assess Nvidia’s objectives.”
He said “the opportunity appears most clear in the smartphone space, where … it seems clear that Nvidia can enhance Arm's offerings.”
Also, “we note that the deal price is lower than earlier press reports had indicated … [and] the implied profitability appears higher, from the exclusion of the [Internet of Things] group.”
Moore’s report didn’t include a rating or share-price target.