BofA Raises Nvidia Target to $350 After $81.6B Quarter

Bank of America raised its price target on Nvidia to $350 from $320 and reiterated a buy rating after Nvidia reported record first-quarter revenue of $81.6 billion. The bank described the quarter as a “beat/raise” and urged investors to view recent selling as short-term noise.

Nvidia reported Q1 revenue of $81.6 billion, up 85% year over year and 20% from the prior quarter, versus analyst expectations near $79.1 billion. Data center revenue was $75.2 billion, up 92% year over year. Adjusted earnings per share were $1.87 versus estimates of $1.73. Gross margin remained at 75% and free cash flow for the quarter was $48.6 billion.

Lead analyst Vivek Arya and his team raised the firm’s price target to $350, which implied about 56.6% upside from the reference share price of $223.47 used in the note. Bank of America projected the total AI market could exceed $3 trillion by 2030 and modeled Nvidia capturing roughly 78% of the AI accelerator market. The team increased its estimate for the market for agentic CPU chips from $125 billion to $200 billion and noted about $20 billion in demand already committed for the second half of the fiscal year.

Customer purchase commitments rose to $145 billion this quarter from $95 billion three months earlier. The bank highlighted a commitment from Amazon Web Services to deploy roughly 1 million Nvidia GPUs through 2027 and characterized the contracts as binding rather than speculative.

Bank of America raised its earnings-per-share projections to $9.09 for fiscal 2027 and $13.27 for fiscal 2028, compared with $4.55 per share in the prior fiscal year. The note showed Nvidia trading at about 19.7 times expected 2027 earnings and a growth-adjusted multiple of 0.5x versus a Mag-7 average of 3.9x.

The bank flagged risks including the stock’s size-about 8.3% of the S&P 500-and the fact that roughly 78% of active fund managers already hold Nvidia, which could limit the pool of new buyers. Bank of America also noted competition from hyperscale cloud providers developing custom AI chips, citing recent processor launches intended to reduce dependency on third-party accelerators. The bank projected Nvidia would retain more than 70% share of the accelerator market over the long term based on its platform and infrastructure.

Nvidia increased its quarterly dividend from $0.01 to $0.25 per share and authorized an additional $80 billion in share repurchases, bringing total buyback capacity to about $120 billion. The bank’s free cash flow forecast rose to $186.8 billion in 2027 and $282 billion in 2028. The $350 price target is based on a 26x multiple of estimated 2027 earnings.

On the earnings call, CEO Jensen Huang told analysts, “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly.” Bank of America pointed to Huang’s scheduled keynote at Computex on June 1 as a likely opportunity for the company to outline its strategy for agentic AI and CPUs.

Nvidia’s share price fell after the results, a pattern the company has seen following three of its last four earnings calls despite rising revenue and profit. Bank of America maintained Nvidia as a top pick in its coverage.