BofA Maintains Buy on NVIDIA, $275 PT

BofA Securities analyst Vivek Arya reiterated on January 6, 2026, a ‘Buy’ rating and $275 price target on Nvidia.

“On Monday, we attended Nvidia’s CES 2026 keynote and financial analyst Q&A session where CEO Jensen Huang outlined continued “very high” demand for AI computing and announced the new Vera Rubin AI platform.

Highlights include:

1. AI scaling remains on track, with 5x token gen, 10x token cost reduction per year;
2. Six new AI chips announced (more below) for the Vera Rubin platform slated for 2H26;
3. A new podlevel context memory storage platform;
4. NVDA continues to run every single major LLM today;
5. AI to be funded by modernization of AI (repurposing $10tn of computing funding last decade), shifting of R&D methods;
6. Groq/SRAM deal could be beneficial for extremely-low-latency workloads;
7. AI is scaling beyond LLMs, into physical AI (Alpamayo announced for AV); and
8. China H200 demand is there, but still awaiting licenses.

We continue to highlight NVDA’s continued dominance in AI compute, networking, system, and ecosystem, trading at just ~19x CY27E PE or in-line with broader SPX despite its superior >35% EPS CAGR and >40% FCF.

Maintain Buy.”

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