BNK Of America (BOFA) raised its target price for NVIDIA (NASDAQ: NVDA) to $ 180 from $ 160, causing the semiconductor giant as the best choice.
The June 1 update follows the NVIDIA Q1 profit report, with NVDA shares increased by more than 2 % to $ 137.94 at the time of the press.
Bofa Vivek Arya analyst is still optimistic, highlighting that Blackweell’s next generation of NVIDIA is now in full production.
To this end, the company is preparing efforts to reach more than $ 100 billion of sales of superior branches such as Amazon, Google and Microsoft. This expansion is preparing to increase the long -term NVIDIA profits.
Watching with this growth, Bofa also raised its EPS estimates for the financial years 2026 to 2028 by 6 % to 12 %. The new EPS project worth $ 4.21 in 2026, $ 5.87 in 2027, and $ 7.23 in 2028. Aria believes that NVIDIA can reach $ 10, driven by powerful Blackweell sales.
The effect of geopolitical risks on NVDA shares
Despite the geopolitical risks, including tensions with China, Arya indicated that NVIDIA has already received $ 15 billion in H20 chips sales for Chinese clients.
The total margins are expected to recover to the mid-70 % range by the end of the year, with the support of its sales and strong demand for network products such as NVLONK and Spectrum-X. These products have got main deals from Google and Meta, which represents new challenges for Broadcom.
Meanwhile, Bofa emphasized that the global expansion of capitalist expenditures is geographically varied, with remarkable investments from regions such as Saudi Arabia. The margin of impressive cash flow is 50 % of NVIDIA from their main peers.
However, ARYA warned that challenges are still exist, including accelerating product courses, implementation risk, data center energy restrictions, and continuous geopolitical tensions.
It is worth noting that the expectations enhance the confidence in NVIDIA after its recent victory over its profits: The company published the profitability of the modified share of $ 0.96, exceeding $ 0.93 expected, and revenues of 44.06 billion dollars, exceeding 43.31 billion dollars.
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