Nvidia (NVDA), which has surged about 250% over the last year, is in the midst of a two day rally, with the latest jump fueled by price target increases from Bank of America today and Citi yesterday. Bank of America expects the company's results for the second half of 2017 and 2018 to beat expectations by a significant amount, while Citi says that the stock can reach $300 in a bullish scenario.

CITI BULLISH: Citi analyst Atif Malik yesterday raised his price target on Nvidia shares to $180 from $145. The stock is failing to price in huge increases in the company's revenue from data centers and automakers that Malik expects to see in the medium term. Additionally, the multiple of Nvidia's stock should rise as the multiple increases to the level typically given to infrastructure-as-a-service/software-as-a service names as AI proliferates and the company offers its graphic processing chip via the cloud, the analyst believes. He expects the company's 2018 revenue growth to come in above the Street's consensus estimate and raised his 2019 EPS estimate for the company to $5.74, which he said was 43% above the consensus outlook. Given the long-term growth outlook of artificial intelligence, Nvidia's stock can reach $300 in a bullish scenario, according to the analyst, who kept a Buy rating on the shares.

BOFA SETS STREET HIGH TARGET: After meeting with Nvidia's CFO, Bank of America Merrill Lynch analyst Vivek Arya raised his price target on the stock to $185 from $155. He thinks that the company's results for the second half of this year and 2018 will come in significantly above expectations. The analyst notes that the Street expects the company to grow just 15% in the second half of this year, versus the first half, while the company has historically grown 21%-59% in the second half of the year. The consensus estimate of 12% revenue growth in 2018 could be conservative, since Nvidia's new Volta chips are more expensive than its previous Pascal chips, Arya wrote. Despite its high multiple, Nvidia stock could continue to rise, as Softbank (SFTBF) may increase its stake in the company and the shares are "the only proven way" to gain exposure to machine learning and artificial intelligence, according to the analyst. Arya also noted that only 17% of the stock is owned by large-cap active U.S. managers, and he believes that the company can get a significant boost from increases in the price of gaming cards and from the proliferation of autonomous driving. He kept a Buy rating on the stock.

PRICE ACTION: In morning trading, Nvidia advanced 2.7% to $164.28 per share. Over the last five days the stock has run up 14% and over the last month it is up nearly 60%.