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

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."