Investing.com — Financial institution of America analysts on Thursday reiterated a Purchase score on Nvidia (NASDAQ:) inventory and lifted the worth goal from $165 to $190, implying practically 40% upside from present ranges.
BofA additionally hiked its 2025 and 2026 professional forma earnings per share (EPS) estimates by 13% and 20%, respectively.
The financial institution believes that Nvidia, which holds an 80-85% market share, is dealing with “generational alternative” in a complete addressable market (TAM) exceeding $400 billion, a big soar from the present 12 months’s projections.
Analysts mentioned their bullish stance on the inventory has been bolstered by a number of latest trade developments – TSMC’s latest blowout report, AMD’s AI occasion, and robust Blackwell demand, amongst others – in addition to the corporate’s strong aggressive positioning.
Furthermore, they spotlight Nvidia’s underestimated enterprise partnerships with main companies like Accenture (NYSE:), ServiceNow (NYSE:), and Oracle (NYSE:), in addition to its software program choices.
“NVDA’s engagements span a number of verticals, and choices resembling AI Foundry, AI Hubs, NIMs are key levers to its AI management, not solely on the {hardware} facet but additionally on techniques/ecosystems facet,” they famous.
BofA initiatives that Nvidia’s free money stream (FCF) at 45-50% margin stays underappreciated, as it’s practically double the common of the so-called “Magnificent Seven” tech giants.
“In $ phrases, NVDA might soak up $200bn+ of FCF over the following two years, rivaling that of AAPL and offering progress optionality,” analysts mentioned.
In its bull case state of affairs, BofA means that Nvidia might outperform expectations if the networking section combine reaches 17-18%, pushed by the ramp-up of its Spectrum swap and potential market share beneficial properties in Ethernet.
This might conceptually result in gross sales exceeding $200 billion within the fiscal 12 months 2026. Moreover, there’s potential for gross margins to enhance towards the mid-70% vary, factoring in system combine shifts and higher yields from the Blackwell product line.