Why Bank of America Says Nvidia (NVDA) Stock Is the Best Chip Buy Right Now
TLDR
- BofA expects Nvidia to report Q2 revenue of $94B-$95B, above its own $91B guidance, with Q3 guided at $107B-$108B
- Nvidia’s forward P/E of 16x projected 2027 EPS is its lowest in 10 years, per BofA
- Memory cost risks are described as “overblown,” with gross margins expected to hold at 73%-74%
- Nvidia has committed roughly $70B in equity to ecosystem partners, including $30B to OpenAI
- BofA maintains a Buy rating and $350 price target, projecting Nvidia EPS of $25+ by 2030
Nvidia stock opened at $223.96 on Friday, up 2.3%, with the stock sitting near its 12-month high of $236.54. BofA Global Research put out a note this week making the case that despite that run-up, the stock is actually cheap by its own historical standards.
The bank says Nvidia is trading at 16 times projected 2027 earnings per share. That is its lowest forward price-to-earnings multiple in 10 years. BofA kept its Buy rating and a $350 price target, calling Nvidia its top sector pick.
Earnings are due after the close on Wednesday, Aug. 26.
… Continue reading the full article at the original source below.
This content is automatically aggregated. Full credit goes to the original publisher (coincentral.com).
