Nvidia (NVDA) shares gained over 2% Friday after Bank of America analysts named the chipmaker a "top sector pick" for its strength in 澳洲幸运5官方开奖结果体彩网:generative AI (genAI).

The analysts wrote Nvidia's "genAI dominance" could help the company generate $100 billion of incremental 澳洲幸运5官方开奖结果体彩网:free cash flow (FCF) over the next two years, adding that they estimate $30 billion to $35 billion could be deployed for buybacks, "leaving a meaningful [$65 billion to $70 billion] in ammunition for new organic & inorgan༒ic growth initiatives."

Bank of America noted that hardware-dependent businesses can face challenges around recurring revenue profiles, "unlike other large-cap software/internet peers," but that Nvidia stands out from competitors as "solid FCF generation creates optionality in addressing these concerns."

The firm added that Nvidia may consider partnerships with or 澳洲幸运5官方开奖结果体彩网:mergers and acquisitions (M&A) of "software companies that are helping traditional enterprise customers deploy, monitor and analyze genAI apps."

Jefferies analysts have also previously designated Nvidia a “franchise pick," while Wedbush said the chipmaker could "end up a winner (if not the winner)" of the AI era.

Nvidia shares closed 2.3% higher at $490.97 per share Friday and have more than tripled in value over the past year.