BofA Raises NVIDIA (NVDA) Price Target on China Sales Outlook

NVIDIA Corporation (NASDAQ:NVDA) ranks among the best magic formula stocks to invest in. BofA Securities kept its Buy rating on NVIDIA Corporation (NASDAQ:NVDA) while increasing its price target from $180 to $220. The adjustment reflects BofA’s scenario analysis of potential additional sales and earnings potential, namely concerning Nvidia’s shipments of H20 chips and Blackwell counterparts to China.

For the second half of 2025, BofA projects a quarterly China shipment run-rate of $4-6 billion, which it anticipates staying flat year over year in 2026 as a result of ongoing limitations on advanced products and heightened local competition.

In line with CEO Jensen Huang’s forecast of a $50 billion China total addressable market over the next two to three years, the analysis projects that China will hold 14% of the global AI accelerator market in 2025, drop to 12% by 2026, and then perhaps hold 5–10% over time.

NVIDIA Corporation (NASDAQ:NVDA), a world leader in networking and graphics processing, provides GPUs for the AI, gaming, HPC, and other industries. The company’s products span data centers, gaming, professional visualization, and the automotive markets.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.