By Erica Kollmann
Publication Date: 2026-04-29 19:31:00
BofA Securities is doubling down on NVIDIA Corp., reiterating its Buy rating and $300 price objective — implying roughly 43% upside from Monday’s $210 level.
The analysts argued that the next leg higher won’t be driven by another AI product cycle, but by something far more old-school: cash returns to shareholders.
In a Monday note titled “Back to Basics,” analyst Vivek Arya and team called Nvidia their top semiconductor pick and laid out why the chip giant’s valuation looks dramatically out of step with its earnings power.
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A 50% Discount To Big Tech
Despite a $5.18 trillion market cap, Nvidia trades at under 20x CY27 earnings and enterprise value/free cash flow — roughly a 50% discount to Magnificent 7 peers averaging 41.5x, and a 66% discount on EV/FCF, according to the firm.
On a Price/Earnings-to-Growth basis, Nvidia sits at just 0.36x versus a peer average of 2.61x.
The kicker: BofA estimates Nvidia will generate more than $400 billion in free cash flow across CY26-CY27, roughly equivalent to Apple Inc. and Microsoft Corp. combined.
Yet, Nvidia’s market cap sits about 29% below that pair’s combined $7 trillion-plus, according to Benzinga Pro.
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The ‘Paltry’ Dividend Problem
Arya argues the disconnect is partly self-inflicted.
Over CY22-25, Nvidia returned just 47% of free cash flow to shareholders via…
