BofA Securities has reiterated its buy rating on Nvidia with a price target of $350, emphasizing the company’s supply strategy as critical to meeting surging AI infrastructure demand.
The firm’s outlook comes as Nvidia’s stock trades at $213, below BofA’s target and InvestingPro’s fair value estimate of $260. Analysts note that Nvidia’s forward EV/EBITDA multiple has declined 44% to roughly 15x since OpenAI’s $100 billion investment announcement in September 2025, which included a 10-gigawatt compute scale commitment. This multiple is less than half of AMD’s, currently around 32x.
BofA estimates that Nvidia could face a maximum financial charge of $500 billion in a worst-case scenario, equivalent to 10% of the company’s current valuation. To sustain operations, the firm projects annual purchase commitments and cloud service agreements of $150 billion to $200 billion. Nvidia’s trailing twelve-month leveraged free cash flow stands at $119 billion, with daily free cash flow generation expected to approach $1 billion next year.
Analysts also highlight Nvidia’s Vera Rubin architecture, with mass production of Rubin R200 GPUs beginning in July. BofA projects a 3% to 4% sales beat for Nvidia’s second quarter, citing upward estimate revisions tied to the new architecture. BMO Capital similarly expects Q2 and Q3 revenues to exceed consensus by $2 billion to $3 billion, driven by data center strength.
Raymond James maintains a strong buy rating with a $352 price target, while KeyBanc and Cantor Fitzgerald have set targets of $330 and $350, respectively. The firm’s PEG ratio stands at 0.29, with a P/E ratio of 32.5. Analysts estimate that Nvidia could distribute roughly 37% of its free cash flow in fiscal years 2027 and 2028, potentially increasing to between 50% and 75% if raised.
Ten analysts have revised earnings estimates upward, reflecting growing confidence in Nvidia’s ability to scale AI infrastructure amid expanding demand.
