Investing.com — Bank of America analysts reiterated a Buy rating on Nvidia (NASDAQ:) stock on Thursday and raised their price target from $165 to $190, calling for a nearly 40% upside from current levels. suggested.
BofA also raised its 2025 and 2026 estimated earnings per share (EPS) estimates by 13% and 20%, respectively.
The bank said NVIDIA, with an 80% to 85% market share, faces a “generational opportunity” with a total addressable market (TAM) of more than $400 billion, significantly higher than this year’s forecast. I’m thinking.
Analysts say their bullish stance on the stock is reinforced by the company’s strong competitive position as well as recent industry developments, including TSMC’s recent blowout report, AMD’s AI event, and Blackwell’s strong demand. He said that
Additionally, it highlights that Nvidia’s enterprise partnerships with major companies such as Accenture (NYSE:), ServiceNow (NYSE:), and Oracle (NYSE:) and its software products are undervalued.
“NVDA’s work spans multiple industries, and services such as AI Foundry, AI Hub, and NIM are critical levers for AI leadership, not only on the hardware side but also on the systems/ecosystem side. ” they state.
BofA predicts that Nvidia’s free cash flow (FCF) margin of 45% to 50% remains undervalued, as it is nearly twice the average for the so-called “Magnificent Seven” tech giants. There is.
“In monetary terms, NVDA has the potential to absorb more than $200 billion in FCF over the next two years, making it comparable to AAPL and offering growth options,” the analysts said.
In a bullish scenario, BofA says NVIDIA could outperform expectations if its networking segment reaches 17-18%, driven by increased spectrum switching and potential market share growth in Ethernet. suggests.
This could conceptually push sales in 2026 to over $200 billion. Additionally, gross margins could improve toward the mid-70% range given the system mix shift and yield improvements in the Blackwell product line.
