NVDA
New chip, same beast
Nvidia’s AI story is rolling into its next act, and Bank of America thinks the market is still underestimating it. Analyst Vivek Arya called NVDA a top pick and set a $350 price target, which implies hefty upside from where the stock sat at the time of the note.
Rubin is the whole plot twist
The real catalyst here is Nvidia’s upcoming Rubin architecture. BofA thinks the start of Vera Rubin shipments, plus fresh Vera CPU ramps and ongoing cloud capex, could spark a multi-quarter upgrade cycle. In other words: this isn’t just a one-quarter pop-and-fade story. It’s more like the opening scene of a sequel studio execs hope turns into a franchise.
A few things make the setup interesting:
- Rubin racks may be priced around $7 million to $8.5 million, well above Blackwell Ultra’s roughly $4 million
- BofA thinks higher memory costs would hit gross margin by only about 60 basis points
- The bank still sees long-term gross margins around 73%–74%, versus roughly 75% today
The margins panic might be overcooked
Sure, memory inflation has become the AI trade’s favorite fear-of-the-week. But BofA argues Nvidia has enough pricing power, sourcing muscle, and customer demand to keep the damage manageable. Translation: if you can charge more for the box than the box costs to build, life gets a lot less dramatic.
And the rental data backs up the hype machine. BofA says A100, H100, and B200 rental prices are near historical highs, which suggests customers still want Nvidia compute badly enough to pay up.
Why investors should care
The valuation angle may be the sneaky bull case here. BofA says Nvidia trades at about 16x forward earnings, which it calls the cheapest valuation in roughly a decade, while EPS could nearly double from $4.55 in calendar 2026 to $9.09 in calendar 2027.
So the setup is a little ironic: the market’s acting cautious just as Nvidia may be entering another major product cycle. If Rubin lands the way bulls expect, the stock could get a second wind — and maybe a reminder that this AI monster still has sequels left in the tank.
Big picture: Nvidia isn’t just selling chips anymore; it’s selling the next chapter of the AI buildout. And Wall Street’s starting to price that in again.