By Manali Pradhan, CFA
Publication Date: 2026-05-17 00:30:00
Bank of America‘s (BAC 0.16%) top semiconductor analyst, Vivek Arya, recently raised Nvidia‘s (NVDA 4.39%) price target from $300 to $320, implying roughly 42% upside from its closing price as of May 15. The bullish call is supported by Bank of America’s increasingly optimistic view of the AI opportunity.
The company has raised its estimate of the total addressable market for AI data center systems from $1.4 trillion annually to $1.7 trillion by 2030. The research company also expects Nvidia to continue capturing more than 70% of the AI infrastructure market in the coming years, despite intensifying competition from Advanced Micro Devices and other companies developing custom chips.
Image source: Getty Images.
The upside potential may seem difficult to justify, especially since Nvidia’s market capitalization has already crossed $5.7 trillion. But the company’s strong business fundamentals suggest that the bullish case may be more realistic than it first appears.
Robust business momentum
Nvidia’s financial momentum remains stellar. The company generated $215.9 billion in fiscal 2026 (ending Jan. 25, 2026) revenue, up 65% year over year, while gross margin was above 71%. The company is guiding for revenue in the range of $78 billion, plus or minus 2%, for the first quarter of fiscal 2027.
Today’s Change
(-4.39%) $-10.35
Current Price
$225.39
Key Data Points
Market Cap
$5.5T
Day’s Range
$224.30 – $231.50
52wk Range
$129.16 – $236.54
Volume
5.8M
Avg Vol
171M
Gross Margin
71.07%
Dividend…
