Bank of America has named Nvidia (NVDA, Financial) the top sector pick for 2025, leaving a price target of $190- 39% above current levels at $136.59. Analyst Vivek Arya led the charge for a strong beginning for the semiconductor giant, who projects Nvidia’s valuation could grow to $4 trillion in the near future.

Nvidia fits Arya’s own confidence, given its Consumer Electronic Show (CES) showcase on January 7. The event is expected to celebrate Nvidia’s leadership in the cutting edge both in robotics and also the RTX 50xx gaming series with GDDR7 memory and AI-driven personal computers, as well as updates to the Blackwell chip series. And should CEO Jensen Huang attend, these innovations should reignite Nvidia’s stock rally off of a year-end plateau.

It’s a mirror image of broader market sentiment. Nvidia received unanimous “buy” ratings in December, including a boost to its target price to $204 from Truist Securities. Despite its own intermittent headwinds, NVDA stock has gained 187.15% in the last year and continues to dominate the semiconductor space.

However, Nvidia’s growth is off the charts, and unanswered questions beg as to whether there’s a ceiling in sight. Its strength is displayed by a $2 trillion valuation increase in a year, but it also raises questions about whether revenue growth will match its skyrocketing market cap.

Nvidia is a compelling narrative for investors to buy into before CES, with the semiconductor giant riding a trajectory that could be eclipsed by the tech giant’s next leap.