Jul. 11 at 2:23 AM
Bank of America reiterated its Buy rating on Nvidia and raised its price target to
$350, implying about 71% upside, arguing the market is overly discounting risks to the AI chip leader. The bank said Nvidia's valuation already reflects a 30%-35% reduction in projected 2027-2028 earnings despite its dominant position in AI infrastructure and expects strong earnings growth to continue.
BofA dismissed concerns over rising high-bandwidth memory (HBM) costs, saying Nvidia's pricing power for complete AI systems should keep gross margins in the mid-70% range. It also downplayed competition from custom AI chips developed by Google, Amazon and Meta, expecting Nvidia to retain a 65%-70% share of global AI infrastructure spending over the long term.
The bank added that Nvidia's investments in companies including OpenAI, Anthropic, Intel, CoreWeave and Marvell remain manageable relative to its projected cash generation.
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