Bank of America is excited about Nvidia’s long-term potential in the field of artificial intelligence. Analyst Vivek Arya has reiterated his buy rating on Nvidia and raised his price target by $40 to $255. That new target implies that the graphics card maker’s stock could rise 17% from Monday’s close. He said the company could particularly benefit from generalized AI, which focuses on generating new outputs based on data the system already understands. ChatGPT is one of the most famous examples of generalized AI. “NVDA’s full set of accelerated silicon/systems/software/developers has uniquely positioned it to lead the race,” he said in a note to customers on Tuesday. the nascent AI arms race between enterprise customers and the global cloud.” The shares were up nearly 1% after the note. It’s up just over 49% this year so far this year, regaining a sizable portion of the 50.3% it lost in 2022. Arya said the company’s revenue and earnings could grow with compound annual rate of 25% to 34% as widespread AI adoption increases. And innovative AI will increase the total addressable market of its accelerator business to $62 billion by 2027. He said the stock could be volatile after a recent rally, but it will be short lived. To be sure, Arya says general AI is in its “necessary hype cycle,” so predicting adoption rate means making a lot of assumptions. But despite the potential variables, he said the move to accelerated computing would help the company. — Michael Bloom of CNBC contributed to this report.