Bank of America projects Nvidia could reach $350 per share on AI chip supercycle

Bank of America analyst Vivek Arya has reaffirmed his Buy rating on Nvidia with a price target of $350, implying roughly 56-61% upside from the stock’s recent trading range of $219 to $224. The call rests on a simple thesis: Nvidia’s AI-driven revenue is growing so fast that the stock is actually getting cheaper on a forward earnings basis, even as the share price climbs.

The numbers behind the bull case

Arya’s projections paint a picture of a company consistently outrunning its own guidance. He expects Nvidia’s fiscal Q2 FY2027 revenue to land between $94 billion and $95 billion. Nvidia itself guided for $91 billion. That’s a $3-4 billion gap between what the company promised and what its own bull analyst thinks it will deliver.

The gap widens further out. Arya projects Q3 revenues of $107-108 billion, which would top Wall Street’s consensus expectation of roughly $104 billion.

Perhaps the most compelling data point in the entire note is Nvidia’s valuation. At approximately 16 times forward earnings, the stock is trading at its lowest multiple in roughly 10 years. Arya has been steadily building his conviction throughout the year, adjusting his price target upward on multiple occasions. The $350 target, reiterated on August 7, 2026, represents his most recent and most aggressive stance. Nvidia’s next earnings report, scheduled for August 26, 2026, after market close, will be the next major test of whether the company can match these lofty expectations.

Why valuation compression matters here

A 16x forward earnings multiple is the kind of number you see on companies that the market thinks have limited growth ahead of them. The fact that Nvidia, riding the biggest technology investment cycle since the dawn of cloud computing, sits at the same valuation tells you one of two things: either the market is skeptical that AI spending will persist, or the stock simply hasn’t caught up yet to the underlying business momentum.

Arya is clearly betting on the latter interpretation. The jump from $94-95 billion in Q2 to $107-108 billion in Q3 would represent sequential growth of roughly 13-14%.

What investors should watch

The August 26 earnings report looms as a pivotal moment. If Nvidia reports Q2 revenue in line with Arya’s $94-95 billion estimate, it would validate the thesis that the company is structurally undervalued relative to its growth trajectory.

Guidance will matter as much as the actual results. If Nvidia’s own Q3 outlook comes in near Arya’s $107-108 billion projection, it would signal to the broader market that management sees the same demand acceleration the bulls are banking on.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.