Bank of America Keeps Nvidia’s $275 Price Target

BofA Securities analyst Vivek Arya reiterated a Buy rating and $275 price target on Nvidia

“We hosted NVDA IR Toshiya Hari for a virtual investor meeting.

Key takeaways:
1) NVDA GPUs remain a full generation ahead of competition, given current available GPU-based LLMs were trained on old Hopper, not Blackwell (LLMs to be available in early 2026) which is 10x-15x better gen-over-gen;

2) next-gen Vera Rubin is on track for 2H26 with no change to roadmap, pre-fill inference CPX version also on track for Q4’26;

3) Google remains a key and growing customer for NVDA, every model builder still runs on NVDA;

4) NVDA has both demand and supply visibility into the $500bn sales outlook in CY25-26 at the minimum, with OpenAI/Anthropic partnerships incremental;

5) 5-year old Ampere GPUs are still nearly 100% utilized at customers, depreciation/useful life of GPUs of 5-6 years is apt;

6) NVDA’s key competitive advantage is its co-design with customers, with an end-to-end platform of CPUs, GPUs, scale-up, scale-out, scale-across, and software (CUDA library) – something no others can replicate;

7) China/H200 impact is too early to assess; and

8) mid-70% GM outlook remains unchanged despite rising memory costs.

Meanwhile, we continue to believe valuation at 25x/19x CY26E/27E PE remains compelling given it represents just ~0.5x earnings growth rate (PEG ratio) versus broader Mag-7 and growth peers at ~2x.

Maintain Buy, our top pick, $275 PO.”

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