Bank of America Maintains $350 Price Target on Nvidia, Sees Nearly 50% Upside

Summary：Bank of America keeps Nvidia target at $350, citing undervalued risk around its AI infrastructure role and $105 billion lease guarantee boosting growth prospects.

Bank of America Affirms $350 Price Target, Highlights Upside Potential

Bank of America (BofA) has reiterated its positive stance on Nvidia shares, maintaining a price target of $350, which implies close to a 50% increase from current levels. Analyst Vivek Arya highlighted that the market's concerns about Nvidia's financial exposure within the AI ecosystem appear exaggerated, resulting in a significant valuation discount.

Nvidia’s $105 Billion Lease Guarantee Draws Market Attention

Earlier this month, Nvidia committed to a lease guarantee valued at $105 billion for a new AI data center under development in Ohio. The facility is led by SB Energy, backed by SoftBank, with OpenAI as the long-term tenant. Beyond supplying chips, Nvidia plans to invest up to $100 billion in OpenAI through 2025. This lease guarantee further solidifies Nvidia’s strategic position as a key infrastructure provider in the AI sector.

Despite some apprehension regarding Nvidia’s risk exposure in this arrangement, Arya clarified that the guarantee covers only potential losses if OpenAI defaults and is capped at $105 billion—substantially less than earlier media reports suggesting $250 billion. Crucially, Nvidia will be the sole AI compute partner for this complex, securing access to vital land and power resources and excluding competitors from sharing these assets.

Nvidia CEO Jensen Huang emphasized the significance of owning core assets such as land, power, and infrastructure in the AI era, underscoring the company’s strategic approach to building its AI ecosystem.

Share Buybacks and Upcoming Earnings Could Catalyze Share Price Recovery

BofA expects Nvidia’s ongoing share repurchases, coupled with the earnings report scheduled for August 26, to help close the valuation gap between the market and the company’s underlying value. Arya estimates that Nvidia shares currently trade at a 34% to 50% discount relative to their intrinsic worth, encouraging investors to monitor forthcoming developments closely.

Overall, Nvidia’s expanding footprint in AI presents promising new revenue avenues while also bringing capital and operational risks inherent to scaling infrastructure. The market’s valuation adjustments reflect these complexities, with future investor focus likely directed toward the company’s financial results and the health of its collaborative AI ecosystem.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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Written byTraderKnows

Created date:2026-08-20 04:08

Last Updated:2026-08-20 07:29

Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.

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Artificial Intelligence

Artificial Intelligence (AI) is a computer system that simulates human intelligence. It leverages algorithms and big data to replicate human thinking, performing tasks such as language recognition, image recognition, and decision-making. AI applications are widespread, spanning sectors including healthcare, finance, and manufacturing. With the advancement of machine learning and deep learning technologies, AI is becoming a key driving force in many industries, fostering social innovation.