Shares of Nvidia Corp. (NVDA) surged to an all-time high Monday morning as Bank of America/Merrill Lynch's Vivek Arya raised his price target for the chipmaker's stock.
Arya's price target is now $210, up from $185 and implying a 17% upside from the stock's closing price on Friday.
Arya said the top pick for Nvidia comes as the California-based firm continues to dominate in gaming, data center and artificial intelligence markets. Nvidia has an "underappreciated transformation from a traditional PC graphics chip vendor, into a supplier into high end gaming, enterprise graphics, cloud, accelerated computing and automotive markets," Arya wrote.
Nvidia is poised to become the dominant supplier and market leader in the emerging $30 billion AI chip market. The company could also capitalize on growth in the healthcare industry, where research relies increasingly on deep learning, Arya added.
Nvidia shares have surged over 197% in the last 12 months, easily topping the S&P 500's 17% gain in the same period. Shares of Nvidia are up 5.2% to $189.44 in midday trading Monday.
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