BofA Keeps ‘Buy’ Rating on Nvidia, Raises PT to $235
BofA Securities analyst Vivek Arya raised on August 28, 2025, Nvidia’s price target to $235 (from $220) while maintaining a ‘Buy’ rating.
“We reiterate Buy on top sector pick NVDA as we believe it remains solidly positioned to maintain its 80%+ share in the fastest growing and most attractive global AI infrastructure buildout, along with industry leading 45%+ FCF margins and valuation at ~1x earnings growth rate (vs.
S&P 500 index/Mag-7 peers at 2x+ PEG).
China remains an uncertainty, but we expect non-China Rest of World (~$200bn in FY26E sales) to more than offset geopolitical headwinds in shipping to China, which we completely exclude from our model.
Overall, we raise FY26/27/28E (roughly CY25/26/27E) pf-EPS by 6%/7%/11% to $4.45/$6.26/8.03.
Our forecasts are based on a 30-35% CY25-27E annual sales growth, while NVDA’s “50% industry growth” suggests an earnings power of over $10/sh by CY27E (and perhaps $15 longer-term), in our estimation.
Near-term the stock could remain volatile due to its 35%+ move intra-quarter and high expectations, but we expect the uptrend to resume as investors revisit the solid fundamental outlook.
We raise our PO to $235 from $220 on unchanged 37x CY26E PE, in line with EPS growth and the middle of NVDA’s 25x-56x historical range.”
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