NVDA
The “wait, Nvidia is the bargain?” moment
Bank of America Securities analyst Vivek Arya is basically telling investors to stop squinting at Nvidia’s stock chart and look at the math. He reiterated a Buy rating and set a $350 price target, arguing the company’s forward P/E has dropped to a seven-year low.
That’s a spicy take for a stock that’s spent the last few years getting treated like the overachiever at the front of the classroom. But Arya’s point is that the market may be overpricing the risk from high-bandwidth memory costs and underpricing Nvidia’s real superpower: pricing power.
Why this matters to your portfolio
Arya thinks Nvidia’s gross margins can stay in the mid-70% range and says the stock already reflects a 30% to 35% EPS headwind. In other words, the market is acting like the next few quarters are going to be messy — and he’s saying that mess is already baked in.
He also expects upcoming earnings to be the kind of event that reminds everyone why Nvidia keeps sitting in the AI capex throne room:
- durable product demand
- strong pricing power
- a supply chain that can still keep up
Cheap relative to the cool kids
The analyst also lined Nvidia up against the rest of the Magnificent Seven and basically said, “Nice valuation, everybody.” Nvidia’s 2026 P/E sits in the middle of the pack, but by 2027 and 2028 it becomes the cheapest of the bunch based on his estimates.
That’s the setup here: if you believe Nvidia can keep being the arms dealer for the AI boom, then a lower multiple could be the market finally giving you a decent entry point instead of a warning flare.
Big picture
This isn’t a new product launch or a jaw-dropping earnings beat. It’s a valuation call — but those matter when a mega-cap stock can move billions on vibes plus spreadsheets. If Arya is right, Nvidia’s recent drop may be less “the growth story is broken” and more “the market got a little too clever for its own good.”