Nvidia Stock Sees Boost as $500B AI Deal Shifts Burden

Nvidia's stock valuation is significantly depressed according to Bank of America, which reiterated a 'Buy' rating and $350 price target.

The firm pointed out that the new $500 billion AI infrastructure financing partnership with six top financiers will free up cash flow for Nvidia.

This deal shifts the burden from Nvidia's balance sheet to the consortium, allowing the company more flexibility to deploy its cash.

Nvidia is expanding beyond its traditional role as an AI chip supplier and increasingly helping finance entire 'AI Factories', said Wells Fargo.