Bank of America reiterates positive outlook on Nvidia stock with $350 price target

Bank of America analyst Vivek Arya is sticking with his Buy rating on Nvidia and a $350 price target, a call that implies roughly 64% upside from where the stock has been trading near $213 to $220. The note landed just ahead of Nvidia’s fiscal Q2 2027 earnings release on August 26, making it less a prediction and more a public dare to the bears. The dare aged well. Nvidia posted fiscal Q2 revenue of $96.2 billion, a 106% jump year-over-year, with earnings per share coming in at $2.22. The company guided for approximately $108 billion in revenue for the following quarter. Why BofA thinks the market is mispricing Nvidia Arya’s thesis boils down to a mismatch between what Nvidia actually generates in cash and what the market thinks could go wrong with AI financing. Nvidia has committed approximately $300 billion to AI-related capital initiatives, a number that includes around $70 billion in equity investments and $230 billion in guarantees or backstops tied to data-center infrastructure. That $300 billion figure sounds enormous until you stack it against Nvidia’s projected free cash flow. BofA estimates the company will generate roughly $469 billion in free cash flow over the next two...