I think Bank of America makes a bold case that $NVDA is undervalued by 55%.
I think Bank of America makes a bold case that $NVDA is undervalued by 55%. They believe we should view Nvidia as an infrastructure owner instead of just a chip seller.
Analyst Vivek Arya set a $350 price target based on this shift. That implies significant upside from Monday’s close before the next earnings report.
This thesis relies on structural advantages beyond simple GPU sales:
- Control over data center land and power
- Ownership of the full infrastructure stack
- Cash flow generation past hardware cycles
BofA projects $470 billion in combined free cash flow for 2026 and 2027. This looks well beyond near-term hardware demand.
We get a direct test of this view when Q2 earnings arrive on August 26. The bank forecasts $94 to $95 billion in revenue versus official guidance of $91 billion.
Everything hinges on whether the market accepts this platform framing over old chip models. Do you think that is a reasonable target for Nvidia? What time frame?
Not financial advice. For informational and educational purposes only.
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