“Nvidia is poised to dominate [artificial intelligence] computing, the most transformational technology of our era,” he wrote in a commentary.
The barriers to entry into Nvidia's businesses are “the highest and longest-lasting within the semiconductor industry,” Gerra said.
He cited “the very large [research and development] spending requirements of Nvidia's ultra-complex architectures, second-to-none software ecosystem, and expanding platform solutions.”
Nvidia recently traded at $586.91, up 2.2%. It has gained 5% in the past three months amid the global chip shortage.
The stock fell on April 19 after Oliver Dowden, the U.K.'s secretary of state for digital, culture, media and sport, said regulators were intervening in the semiconductor company's proposed acquisition of Arm Ltd.
The British government is looking at the Santa Clara, Calif., company's proposed $40 billion purchase of the British chip designer from Softbank Group SFTBY due to national security concern.
Also last month, Raymond James upgraded the graphics-chip maker to strong buy from outperform and raised its price target to $750 from $700.
“Our call is not really new, as we’ve been positive on NVDA for some time,” wrote Raymond James analyst Chris Caso.