Bank of America analysts reaffirmed their Buy rating on Nvidia (NASDAQ:NVDA) stock this week, raising the price target from $165 to $190, implying an upside potential of nearly 40% from current levels.
The analysts also increased their 2025 and 2026 pro forma earnings per share (EPS) estimates by 13% and 20%, respectively.
BofA believes Nvidia, which commands an 80-85% market share, is poised for a "generational opportunity" in a total addressable market (TAM) exceeding $400 billion, a sharp rise from current projections.
This bullish outlook is strengthened by recent industry developments, such as TSMC’s strong report, AMD’s AI event, and strong demand for Nvidia’s Blackwell chips, among other things.
In addition, the analysts emphasize Nvidia’s often underappreciated enterprise partnerships with firms like Accenture (NYSE:ACN), ServiceNow (NYSE:NOW), and Oracle (NYSE:ORCL), as well as its software offerings.
“NVDA’s engagements span multiple verticals, and offerings such as AI Foundry, AI Hubs, NIMs are key levers to its AI leadership, not only on the hardware side but also on systems/ecosystems side,” they noted.
BofA’s team also highlights Nvidia’s strong free cash flow (FCF), which they project to maintain a 45-50% margin—nearly double that of the "Magnificent Seven" tech giants—suggesting this financial strength remains underappreciated by the market.
