BofA Sees $350 Upside for Nvidia Amid Strong AI Demand

Nvidia's stock price has received a boost from Bank of America analyst Vivek Arya, who maintained a Buy rating on Nvidia and set a $350 price target.

Arya believes that the market is over-penalizing AI capital spending risks, which he sees as an opportunity for Nvidia to grow. The company's quarterly revenue reached $96.2 billion, up 106% year-over-year, with data centers contributing about $89 billion of this total due to strong Blackwell shipments.

BofA views the current valuation as low if AI accelerator demand remains strong, which is a key assumption in their analysis. However, they also identify several risks that could impact Nvidia's performance, including customer concentration and hyperscaler spending.