Nvidia is well placed to provide the tech necessary to develop new AI models, and it's got an edge with big enterprise customers, BofA analysts note.

A BofA analyst sees room for Nvidia Corp. shares to tack on another 40% or so to their explosive rally, as a “generational opportunity” further unfolds.

Nvidia shares hit another record high Thursday as concerns earlier this week about a softening in the semiconductor market was eased by TSMC's earnings report.

Nvidia stock is already up 180% this year and more than 31,000% over the last decade as the company became the face of the artificial intelligence revolution.