Nvidia Could Add $3.1 Trillion as BofA Reiterates $350 Target Before Earnings

Bank of America has reiterated its Buy rating and $350 price target on Nvidia, implying that the AI-chip leader could add approximately $3.1 trillion in market value if the bullish forecast proves accurate.

Nvidia shares traded near $220.12 Tuesday morning, giving the target approximately 59% upside. Based on the company’s roughly 24.2 billion outstanding shares, a $350 stock price would value Nvidia at approximately $8.47 trillion.

The recommendation is current, but the target itself is not new. Bank of America analyst Vivek Arya reiterated the forecast on August 17 after originally raising the target from $320 to $350 in May.

Why Bank of America Remains Bullish on Nvidia

Arya described Nvidia as a “unique, durable growth franchise” trading at approximately 18 times forward earnings—a valuation he characterized as a seven-year low.

The analyst believes investors are overestimating the effect of higher high-bandwidth memory costs while underestimating Nvidia’s pricing power, scale and approximately $119 billion in supply-chain commitments.

Bank of America estimates that the HBM content in each server rack could increase by approximately $200,000 to $300,000 as Nvidia moves from Blackwell to its Rubin platform. However, total rack prices could rise by between $2 million and $3 million to approximately $6 million to $7 million.

That difference could allow Nvidia to absorb rising memory costs while maintaining gross margins in the mid-70% range.

Arya also argues that competition from custom chips developed by Google, Amazon and Meta has not prevented Nvidia from expanding its position. Nvidia’s sales to hyperscale cloud customers reportedly increased 115% year over year—nearly twice the growth rate of overall cloud capital expenditure.

Bank of America expects Nvidia to capture more than 65% to 70% of long-term AI infrastructure spending, according to the latest summary of Arya’s research.

The $350 Target Was Established in May

When Bank of America established the $350 target in May, the firm also increased its estimate for the artificial intelligence infrastructure market.

The bank projected that the opportunity could reach approximately $3 trillion by 2030, up from its previous estimate of $1.7 trillion. It also raised its Nvidia earnings forecasts following the company’s stronger-than-expected fiscal first-quarter results.

Investors should therefore distinguish between two developments:

• Bank of America originally raised its target to $350 on May 21.
• The firm reiterated that target and its Buy rating on August 17.

The latest action confirms that the bank remains confident in its valuation before Nvidia’s next earnings report, but it is not a new target increase.

Nvidia Earnings Will Test the Bullish Forecast

Nvidia’s recent results support Bank of America’s long-term argument.

The company reported fiscal first-quarter revenue of $81.6 billion, representing an 85% increase from the previous year.

Data Center revenue climbed 92% to $75.2 billion, while Nvidia maintained a non-GAAP gross margin of 75%. Management forecast approximately $91 billion in second-quarter revenue, plus or minus 2%, without assuming any data-center computing revenue from China.

Nvidia will report its fiscal second-quarter results on August 26. Investors will focus on whether revenue exceeds the company’s guidance, the effect of memory costs on margins, demand from hyperscalers and progress toward the Vera Rubin rollout.

The results will also test Bank of America’s claim that Nvidia can preserve its pricing power as AI systems become more complex and expensive.

Nvidia Stock Falls Ahead of Earnings

Nvidia shares fell approximately 2.2% Tuesday morning as higher Treasury yields pressured semiconductor and other technology stocks.

The decline reduced Nvidia’s market capitalization to approximately $5.33 trillion. At that valuation, reaching Bank of America’s target would require the company to create more than $3.1 trillion in additional shareholder value.

The forecast remains ambitious. Risks include competition from custom AI accelerators, higher memory and infrastructure costs, export restrictions affecting China and a potential slowdown in spending by major cloud providers.

What the Forecast Means for NVDAB

Nvidia’s tokenized stock, NVDAB, should broadly follow movements in the underlying Nasdaq-listed shares.

However, temporary price differences can occur because NVDAB trades through cryptocurrency-market infrastructure and remains available outside regular US equity-market hours. Liquidity, spreads and rolling 24-hour performance calculations can also affect its displayed return.

Bank of America’s reiterated target provides a current bullish catalyst for both NVDA and NVDAB. Nevertheless, the August 26 earnings report—not the repetition of a target originally established in May—will provide the next major test of the $350 valuation thesis.