Bank of America has reiterated its Buy rating for NVIDIA, setting a target price of $350, representing a 79% upside from its current price of $195.55. The bank's July 7 report highlights NVIDIA's valuation at 15.7 times the expected 2027 P/E, marking its lowest in seven years and a 30-35% discount compared to tech peers.
Despite concerns over HBM cost pressures and custom ASIC competition, Bank of America remains optimistic, citing NVIDIA's Vera Rubin inference performance per watt as 10 times higher than Blackwell and maintaining a gross margin expectation of 75%. The company's sales to hyperscale customers have surged 115% year-over-year, outpacing cloud capex growth. While risks such as crowded positions and a $65 billion ecosystem investment exist, these factors are considered priced into the current valuation.
Bank of America Reaffirms NVIDIA Buy Rating with $350 Target
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