Bank of America Positions Nvidia as Premier Chip Choice Ahead of Forthcoming Earnings
As we approach the eagerly awaited second-quarter earnings report of AI chipmaker, Nvidia, Wall Street is showing its support. Bank of America has positioned Nvidia (NASDAQ: NVDA) as its top semiconductor pick, upholding a Buy rating and setting an ambitious $350 price target — one of the most optimistic predictions on the Street.
Analysts at BofA are forecasting Nvidia to announce revenue in the region of $94–$95 billion, a significant $3–4 billion above the company’s own $91 billion guidance. They also predict an increase in forward guidance to $107–$108 billion, considerably higher than Wall Street’s current $104 billion consensus. Furthermore, the bank anticipates that Nvidia will secure 65–70% of the AI accelerator market by the end of the decade.
The analysts also drew attention to Nvidia’s venture capital reach, with an estimated $70 billion in direct equity stakes across ecosystem partners. This includes $30 billion in OpenAI and up to $10 billion in Anthropic, supported by a projected $469 billion in free cash flow for 2026 and 2027. Despite rising concerns over increasing memory costs, BofA has dismissed these worries as “overblown,” pointing to Nvidia’s pricing leverage and strategic supplier relationships.
In their most recent quarterly report (May 20), Nvidia reported Q1 revenue of $81.61 billion, indicating a 85.2% year-over-year growth, with an EPS of $1.87, surpassing the $1.76 consensus.
Source: Yahoo Finance — BofA: Nvidia’s next earnings report could kick off a “multi-quarter upgrade cycle”