Bank of America Stands by Nvidia (NVDA) With $275 Target as AI Leadership Holds

NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts Are Watching. On February 9, Bank of America reiterated the stock as “Buy” with a $275 price target. The firm said it is standing by the stock. Its price target is based on a forward valuation that reflects Nvidia’s robust position in fast-growing AI compute and networking markets.

This view is supported by the chipmaker’s market leadership, but offset by several risks.

“Our $275 PO is based on 28x CY27E PE ex cash, within NVDA’ s historical 25x-56x forward year PE range, which we believe is justified by NVDA’s leading share in fast growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.”

Analysts on Wall Street have a consensus “Buy” rating on the stock. The average price target of $250 implies a 30.23% upside; however, the Street-high target of $432.78 implies an upside of 125.44%.

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

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.

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Disclosure: None. This article is originally published at Insider Monkey.