Nvidia (NVDA) Stock: Bank of America Sees 60% Upside With $350 Price Target
TLDR
- Bank of America reiterated a $350 price target on Nvidia (NVDA), with the stock opening Wednesday at $219
- NVDA is trading at a 40%-50% discount to AI compute peers on an enterprise value-to-free cash flow basis
- The stock is also 31%-36% below the S&P 500 valuation, which BofA calls a “compelling opportunity”
- Nvidia is still 7% below its 52-week high of $236.54, hit on May 14
- Stifel analyst Ruben Roy expects Nvidia to “beat and raise” at its Aug. 26 earnings report
Nvidia (NVDA) opened Wednesday at $219, and Bank of America thinks that price is a bargain. BofA analyst Vivek Arya reiterated a $350 price target on the stock, implying nearly $130 of upside from current levels.
Arya’s note to clients, sent Tuesday, pointed to Nvidia’s valuation as the core thesis. The stock is trading at a 40%-50% discount to AI compute peers on an enterprise value-to-free cash flow basis. It is also sitting 31%-36% below the S&P 500 on the same metric.
BofA says that discount is mispriced. Arya argued the gap is “overstating the risks” tied to investments in private AI firms like OpenAI and Anthropic, and urged institutional clients to take entry positions now.
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