Nvidia stock rating reiterated at Buy by BofA, citing full-stack AI leadership

Investing.com - BofA Securities has reiterated its Buy rating and $275.00 price target on Nvidia (NASDAQ:NVDA), highlighting the company’s unique position in the AI chip market. This aligns with the strong analyst consensus of 1.34 (where 1 is Strong Buy) according to InvestingPro data, with price targets ranging from $100 to $350.

The investment firm emphasized that Nvidia is "the only merchant chip supplier with proven full-stack, rack-scale execution in large AI clusters," noting its progression through three generations of technology by the second half of 2026. This dominant position has fueled Nvidia’s impressive 71.55% revenue growth over the last twelve months, with the company now commanding a market capitalization of $4.62 trillion.

BofA addressed concerns about cloud capital expenditure, suggesting these worries are typically seasonal and peak in the fourth quarter before resolving when cloud customers provide their spending outlooks for the new year. Investors awaiting more clarity should note that Nvidia reports earnings in just 5 days, on November 19th.

The firm described Nvidia’s valuation as "compelling" at 27x/21x price-to-earnings ratio for calendar years 2026/2027 estimates, calling it "essentially a market multiple for the leading franchise in the fastest growth cycle globally." InvestingPro data shows Nvidia’s current P/E ratio at 53.93, though its PEG ratio of 0.82 suggests it may be trading at a low P/E relative to near-term earnings growth.

BofA’s $275 price objective is now based on 30x calendar year 2027 earnings estimates versus 44x calendar year 2026 estimates as the firm extends its financial model forward.For investors seeking deeper insights, InvestingPro offers 17 additional ProTips on Nvidia and a comprehensive Pro Research Report that transforms complex data into actionable intelligence, available for this and 1,400+ other US equities.

In other recent news, Nvidia has seen several analysts adjust their price targets ahead of its upcoming earnings report. Wells Fargo raised its price target for Nvidia to $265, citing positive momentum in the company’s data center business driven by increased hyperscale capital expenditures. Similarly, Oppenheimer increased its target to $265, expressing optimism about Nvidia’s potential to exceed consensus expectations for its fiscal third-quarter earnings, which are projected at $54.7 billion in sales and $1.25 earnings per share. KeyBanc maintained its Overweight rating and $250 price target, expecting strong results for the October quarter and improved guidance for the January quarter.

Susquehanna also revised its price target upwards to $230, highlighting strong AI demand and the continued ramp-up of the GB300. The firm noted that hyperscale capital expenditure plans are projected to rise significantly. In related industry news, AI coding tool maker Cursor raised $2.3 billion at a $29.3 billion valuation, a substantial increase from earlier this year. The funding round was supported by investors such as Accel and Coatue, marking Cursor’s third funding round in 2023.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.