Nvidia Rises to Decade-Low Valuation Ahead of Earnings Report
Nvidia's stock has been on the rise, opening Friday at $223.96 and reaching within striking distance of its 12-month peak of $236.54. This surge comes as Bank of America Global Research issued a bullish call, naming Nvidia their top semiconductor selection.
The bank's analysis argues that Nvidia remains undervalued relative to its own history, with shares trading at just 16 times estimated 2027 earnings per share, the most attractive forward price-to-earnings valuation in a decade. Bank of America reiterated its Buy recommendation alongside a $350 price target, which ranks among the most bullish on Wall Street.
The timing is notable as Nvidia is set to report fiscal second-quarter results after the market closes on Wednesday, Aug. 26. Bank of America expects the numbers to handily beat management's own guidance, projecting Q2 revenue in the $94 billion to $95 billion range and topping the company's official forecast.