Baird initiates Nvidia at overweight, says stock can rise nearly 40%

Nvidia headquarters in Santa Clara, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images

Nvidia's early lead in artificial intelligence makes its stock appear dramatically undervalued by the market, according to investment firm Baird.

Analyst Tristan Gerra initiated coverage of the tech company on Tuesday evening with an overweight rating, saying in a note to clients that Nvidia would prove to be a dominant player in "the most transformational technology of our era."

More In Street Calls

CNBC ProEnergy stocks roar toward their best year in three decades amid recovery in oil
CNBC ProHere are Friday's biggest analyst calls of the day: Amazon, Facebook, Ford, GM, Delta, Nike & more
CNBC ProTop analyst upgrades Delta and Alaska Air, says trading is 'bizarre' compared to peers