Nvidia shares jumped after Bank of America raised its price target for the stock by 11%

Nvidia (NVDA - Get Report) shares rose after Bank of America analyst Vivek Arya affirmed the chipmaker at buy and raised his target price for the stock 11% to $250 from $225.

That's the highest among Wall Street analysts, Bloomberg reported

At last check the stock was up 5.3% at $196.37.

In an Oct. 15 report Arya said he has "increased confidence" in Nvidia's growth prospects, thanks to the strength of its natural language processing technology.

"Nvidia's data-center growth is on the cusp of benefiting from the next-big artificial-intelligence landmark," the report said, discussing that language technology.

That puts Nvidia in a "prime position to leverage its portfolio of hardware, software and developer ecosystem."

Given the chip titan's portfolio of products that include gaming, AI and autos, "no other company is able to leverage a common parallel computing architecture at scale," the report said.

Another analyst, Morningstar's Abhinav Davuluri, pegs Nvidia's fair value much lower. He ranks the Santa Clara, Calif., two stars on Morningstar's five-star scale, meaning it's overvalued.

After the company's second-quarter-earnings report in August, he wrote, "We still expect revenue declines for the year in the mid-single digits and are maintaining our $120 fair value estimate for narrow-moat Nvidia."

After peaking at more than $280 in September 2018, Nvidia shares slipped as low as $127 three months later amid concern about the company's growth prospects.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.