May. 29 at 7:18 PM
BoA 4.78-star Wall Street Analyst reiterates Buy Rating on
$NVDA & ups TP from
$160 to
$ATNF
F/casting long-term earnings power of
$10/share, driven by the Nvidia's AI hardware dominance.
Ests Nvidia holds 80-85% of the total market for AI data center chips — a position he describes as “best-in-class in opportunity & execution.”
"Blackwell racks are now in full production" w/ major hyperscalers deploying close to 1,000 units/week.
Given a
$2.5M+ avg selling price/rack, this points to a quarterly rev opportunity exceeding
$30B. When extended across Nvidia's top-tier custs, that could mean over
$100B in annual rev potential from just a few hyperscalers.
Ups EPS f/cast for CY27 to
$7.23/ share [up +12%] resulting in a Fwd P/E: 19.23x
China is now "de-risked," as Nvidia's
$15B in H20 chip sales for 1H25 have already been modeled.
F/casts gross margin returning to mid-70% range
FCF margin is hovering ~50%, more than twice the 19% avg among the ‘Mag 7’
PEG: 0.9x vs peer group of 3x
