Bank of America reiterated its Buy rating and a $350 [1] price target for Nvidia on Wednesday, May 21.
This endorsement signals continued institutional confidence in the semiconductor giant's growth trajectory despite broader market volatility. As artificial intelligence continues to drive hardware demand, the rating suggests that the company's valuation remains attractive to major investors.
Analysts at Bank of America said a "compelling value multiple" [1] was a primary driver for the rating. The firm also said that the company's performance demonstrated a "solid beat/raise" [2], referring to the company's ability to exceed earnings expectations and increase future guidance.
This updated target of $350 [1] represents an increase over the previous price target of $320 [3]. The firm said investors should "ignore the noise" [2] regarding the stock's short-term fluctuations and focus on the long-term fundamentals of the business.
While the focus remains on Nvidia, Bank of America is also monitoring the wider AI ecosystem. The firm said that agentic AI could expand the server CPU market to $170 billion [4]. In related moves, the bank set a $560 [4] price target for AMD, suggesting a broad bullish outlook for the AI-driven hardware sector.
Nvidia continues to dominate the GPU market, providing the essential infrastructure for large language models and generative AI. The bank's decision to maintain the Buy rating emphasizes the belief that the current price does not yet fully reflect the company's potential earnings power.
“Bank of America reiterated its Buy rating and a $350 price target for Nvidia”
The reiteration of a high price target by a major financial institution like Bank of America suggests that the 'AI bubble' concerns have not deterred institutional appetite for Nvidia. By highlighting a 'compelling value multiple,' BofA is arguing that the stock's price is justified by its actual earnings growth, positioning Nvidia as a foundational play for the expanding server CPU and AI infrastructure market.
