Bank of America sees a major buying opportunity in Nvidia (NVDA) shares ahead of the chipmaker’s August 26 earnings report. Analyst Vivek Arya reiterated a $350 price target on the stock, implying roughly 60% upside from Wednesday’s opening price near $219.
The bullish case is built on valuation. Nvidia is trading at a 40%–50% discount to AI compute peers on an enterprise value-to-free cash flow basis, and 31%–36% below the S&P 500 on the same metric. Arya argued that the gap is “overstating the risks” tied to private AI investments such as OpenAI and Anthropic, and he urged institutional clients to take entry positions now.
BofA also highlighted Nvidia’s $105 billion infrastructure commitment to OpenAI, saying it positions Nvidia not just as a chip supplier but as an active builder in the AI ecosystem. The bank also pointed to Nvidia’s strategy of backing smaller AI companies, creating a secondary buyer network if large cloud orders slow.
Separately, the Financial Times reported that Chinese authorities have allowed ByteDance and Tencent to receive about 10,000 Nvidia H200 processors each in recent weeks, with other Chinese firms potentially gaining similar approvals. That could add upside to Nvidia’s China revenue when it reports results.
Stifel expects a beat-and-raise quarter and reiterated a Buy rating with a $282 price target. Morningstar has a $280 fair value estimate and is also looking for another strong quarter, expecting over $300 billion in data center revenue in calendar 2026. Investors are focused on gross margin, memory costs, and inference competition, though analysts say those risks may already be partly priced in.
