BofA Securities Reaffirms Buy on NVIDIA, $350 Price Target

BofA Securities analyst Vivek Arya reiterated a Buy rating and $350 price target on NVIDIA (NASDAQ: NVDA)

“The three headlines from NVDA’s beat/raise results are: 1) Significantly raising FY28/CY27 YoY sales growth guidance to ~70% YoY, well-above consensus at 45%, with demand 2x YoY (growth is supply constrained), 2) Providing disclosures for ~$500bn in cumulative multi-yr supply/off-B/S commitments (inline with our preview), tempered by 3) Reduction in GM towards 72-73% from 75% due to rising memory costs.

Management delivered a compelling vision of how strategic investments help NVDA secure its dominance in this once-in-a-generation AI buildout.

Overall, we keep FY27/CY26E pf-EPS steady at $9.09, but raise FY28/CY27E by 19% to $15.72 and FY29/CY28E to $23.17. We now forecast CY30 EPS power at $31+, above $25 prior.

We maintain our $350 PO on lower 22x (27x prior) PE on recent reduction in comp multiples, in-line with larger cap tech (Mag-7) peer average of ~21x. We flag positive read-across for memory/MU.

Reiterate Buy, top pick.

1) Vera Rubin is expected to be 20% of DC sales in FQ3, quickly ramping at all major customers.

2) FY28 +70% YoY outlook is driven by strong supply visibility and capacity commitments over the next 2-3 years, as well as NVDA’s ability to secure land, power, shell.

3) Expanding $ content from ~$25bn/GW in Blackwell to ~$40bn/GW in Rubin and $50bn+ over time.

4) NVDA can address a diversity of customer base (sovereign, on prem, etc.), with only ~25% of FY28 sales from frontier labs who need B/S support.

5) We now see EPS CAGR of ~60% for CY26-28E, suggests PEG of only ~0.3x vs. SPX ~1.0x.”

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