Nvidia shares pop as analysts dismiss AI bubble concerns
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Investing.com -- Nvidia’s latest earnings call offered fresh evidence that the artificial intelligence boom still has considerable momentum, according to Bank of America.
Analyst Vivek Arya reiterated a Buy rating and described Nvidia as the bank’s “top sector pick as AI demand continues to strengthen,” arguing the stock’s valuation remains “compelling” even as investor skepticism lingers.
BofA highlighted five comments from Nvidia management that the bank sees as central to the long-term AI investment case.
First, Nvidia said “Blackwell sales are off the charts”, with the potential to “exceed $500bn in CY25+CY26 demand”, boosted by incremental deals with Anthropic and Humain.
Second, the company noted that “Cloud GPUs are sold out, including 6-yr old Ampere GPU,” which BofA said directly addresses concerns about data-center overbuilding.
The third key message was stronger-than-expected adoption of new products: the “Blackwell Ultra ramp… with GB300 > GB200,” which Nvidia said is now contributing roughly two-thirds of Blackwell revenue.
Fourth, despite higher input costs, management said it still expects to maintain gross margins “in mid-70%s.”
Finally, Nvidia emphasized that per-system content is expanding, with BofA citing guidance that GW content will rise from Hopper’s $20–$25bn to $30bn+ for Blackwell, and “likely higher for Rubin.”
BofA raised its FY27/28 EPS estimates by 5% and 6%, projecting $7.40 and $9.70, respectively.
Looking further ahead, Arya wrote that Nvidia’s EPS power could “conceptually also double towards $40/sh by CY30E” if AI capex accelerates toward $3–$4 trillion, noting the stock at $190 trades at an implied “
Still, BofA flagged risks including crowded positioning, customer financing constraints and limits on data-center power and space.