Bank of America (BofA) has reiterated both its Buy rating for Nvidia (NASDAQ: NVDA) and its stock price target of $180 for the next 12 months, roughly a 27% increase.

The steady confidence is, of course, the result of Nvidia’s dominant position in the artificial intelligence (AI) sector and aligns with the overall Wall Street consensus, which sets the price target at just north of $176.

Vivek Arya, a securities stock analyst at BofA, pointed to Nvidia’s 86% year-over-year (YoY) revenue growth as evidence of increased demand and efficient operational execution. 

Arya likewise noted that the company managed to address pressing investor concerns, such as those surrounding the launch of Nvidia’s Blackwell rack platform, sovereign demand for AI solutions, and halted shipments to China. 

Nvidia stock analysis

Currently, Nvidia is trading at 30x forward earnings and sports a price/earnings to growth (PEG) ratio under 1.0x, which is well below the 2.4x average among Nvidia’s Magnificent Seven peers and signals relative value.

Indeed, Arya highlighted Nvidia’s product pipeline and scale, noting that the stock is priced quite attractively despite the $3.46 trillion market cap and a current price-to-earnings (PE) ratio of 45.26x.

Since Blackwell chips have more than doubled the speed of AI model training, other analysts are in agreement with BofA. UBS and Citi, for instance, also maintain a Buy rating, highlighting especially the growth of Nvidia’s networking division, which hit $5 billion in the latest quarter.

Despite the headwind it faced in regard to H20 chip shipments to China, Nvidia has managed to strike some major deals in the Middle East. Most notably, the company announced a 10-square-mile data center project in the United Arab Emirates.

All in all, BofA remains confident in Nvidia’s trajectory, citing Nvidia’s unmatched performance, ecosystem control, and AI market leadership as signs of the company’s ability to deliver on all its promises.

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