Bank of America has firmly reiterated its “Buy” rating on Nvidia Corp. (NASDAQ:NVDA), maintaining a bullish $350 price target that signals a staggering 78% upside potential from its current $195.55 trading price.
Analysts argue that prevailing Wall Street anxieties have created an irrational disconnect, leaving the artificial intelligence chip giant‘s compounding structural advantages completely “unappreciated” by the broader market.
Valuation Hits Historic Disconnection
According to the BofA Global Research report, NVDA is currently trading at a “7-yr low 18x forward PE,” representing a massive 30% to 35% valuation discount compared to its mega-cap technology peers.
BofA strongly pushes back against recent market fears regarding imminent gross margin compression driven by rising high-bandwidth memory input costs.
The analysts state that investors drastically underestimate NVIDIA’s deep-rooted scale, asserting that the company’s core “pricing power [is] unappreciated” and that the “valuation already bakes in 30-35% EPS headwind.” The note details that its unique long-range planning and product co-design allow it to absorb supply chain costs seamlessly.
Unrivaled Hardware and Ecosystem Dominance
Despite rising competitive threats from custom application-specific integrated circuits (ASICs) developed by major cloud hyperscalers, BofA forecasts that NVIDIA will comfortably maintain a dominant “65-70%+” share of the global AI accelerator market through calendar year 2030.
Remarkably, NVIDIA’s GPU revenue has scaled an astronomical “700x since ASICs launched in 2015,” proving its computing architecture remains entirely irreplaceable.
Looking ahead, the upcoming Vera Rubin chip platform is expected to deliver a massive “10x more performance per watt,” dramatically widening its lead over hardware rivals.
Capital Flexibility Reinforces the Moat
Finally, the research dismisses anxieties over NVDA’s $65 billion partner investments, labeling the ecosystem spend a limited “yellow flag” that still leaves significant “ammunition for enhancing dividends and buybacks”.
BofA expects upcoming quarterly earnings to serve as a major positive clearing event for the stock, explicitly validating “NVDA’s durable moats across its products, pricing and supply chain” for the foreseeable future.
How Has NVDA Performed In 2026?
Nvidia shares were up 5.59% year-to-date, down 3.98% over the last month, and higher by only 24,45% over the year. It closed 0.71% higher at $196.93 per share on Tuesday, and was down XX% in premarket on Wednesday.
Benzinga’s Edge Stock Rankings indicate that NVDA maintains a weak price trend in the short and medium terms but a strong trend in the long term, with a good quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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