Analyst Suggests Nvidia Stock Could Rise by 42%

Key Facts on Nvidia’s Growth

Bank of America analyst Vivek Arya has raised Nvidia’s price target from $300 to $320, reflecting a potential 42% upside as of May 15. This adjustment comes on the heels of a revised estimate indicating that the total addressable market for AI data center systems will grow from $1.4 trillion to $1.7 trillion annually by 2030. Nvidia holds a dominant position, capturing over 70% of the AI infrastructure market, despite increasing competition from companies like Advanced Micro Devices.

Nvidia reported fiscal 2026 revenues of $215.9 billion, a 65% increase year-over-year, with a gross margin surpassing 71%. The company anticipates first-quarter revenue for fiscal 2027 in the range of $78 billion. Its four largest clients—Amazon, Microsoft, Alphabet, and Meta—are projected to spend over $700 billion on AI infrastructure in 2026. Additionally, CEO Jensen Huang has highlighted over $1 trillion in expected demand for Nvidia’s Blackwell and Rubin systems through 2027.

While Nvidia’s market capitalization exceeds $5.7 trillion, the company’s strong fundamentals and expanding opportunities in AI—especially in markets outside major cloud providers—support Bank of America’s bullish outlook. Nvidia has also committed up to $2.1 billion in partnership with AI data center operator IREN, showcasing its focus on securing AI infrastructure capacity.