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Investing.com - BofA Securities raised its price target on Nvidia (NASDAQ:NVDA) to $235 from $220 on Thursday, while maintaining a Buy rating on what it calls its "top sector pick." The stock, currently trading near its 52-week high with a market capitalization of $4.43 trillion, has demonstrated remarkable momentum with a 45.4% return over the past six months. InvestingPro data reveals the company maintains an EXCELLENT financial health score, with 20+ additional exclusive insights available to subscribers.
The firm cited Nvidia’s dominant position in the AI infrastructure market, where it maintains over 80% market share, along with industry-leading free cash flow margins exceeding 45%. BofA noted that Nvidia’s valuation stands at approximately one times its earnings growth rate, compared to the S&P 500 index and Magnificent Seven peers trading at more than twice their PEG ratios.
BofA Securities increased its earnings per share estimates for fiscal years 2026, 2027, and 2028 by 6%, 7%, and 11% respectively, to $4.45, $6.26, and $8.03. These forecasts assume 30-35% annual sales growth from calendar years 2025 through 2027.
While acknowledging that China remains an uncertainty, BofA expects non-China markets to more than offset geopolitical headwinds, with Rest of World sales projected at approximately $200 billion in fiscal year 2026. The firm has completely excluded China shipments from its model.
BofA maintained its 37x calendar year 2026 price-to-earnings multiple, which it says aligns with Nvidia’s EPS growth and falls in the middle of the company’s historical P/E range of 25x to 56x. The firm noted that while the stock could experience near-term volatility due to its 35% intra-quarter move and high expectations, it expects the uptrend to resume as investors revisit the company’s fundamental outlook.
In other recent news, Nvidia has been the focus of several major investment firms following its latest quarterly results. Goldman Sachs reiterated its Buy rating on Nvidia, maintaining a price target of $200, noting that the company’s results and guidance were in line with expectations. Morgan Stanley also adjusted its stance, raising the price target to $210 while keeping an Overweight rating, highlighting Nvidia’s guidance for $7 billion in incremental quarterly revenue. TD Cowen maintained its Buy rating with a $235 price target, despite describing the results as "lackluster" compared to Nvidia’s recent standards. Jefferies increased its price target to $205, citing strong demand and the successful rollout of the B300 product line. Mizuho reiterated an Outperform rating, with a $205 target, emphasizing Nvidia’s dominant position in AI training and inference chips for data centers. These developments underscore Nvidia’s continued significance in the semiconductor market, with multiple firms expressing confidence in its future performance.
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