Bank of America (BAC) backed its positive call on Nvidia’s stock (NVDA), keeping a Buy rating and a $350 price goal. The report was led by 5-star analyst Vivek Arya, who wrote that the chipmaker trades at a “significantly depressed valuation” compared to its long-term growth. This helped lift NVDA stock up 1.7% in pre-market trading today, August 11.
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High conviction NVDA bears now have this Tradr ETFThe encouraging news comes as Nvidia partners with six top investment firms on a $500 billion artificial intelligence funding deal. The group includes Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS), and KKR (KKR). Bank of America noted that shifting these funding risks to outside investors frees up cash for Nvidia to invest in growth.
Wells Fargo Expects a Much Bigger Role for Nvidia
5-star Wells Fargo (WFC) analyst Aaron Rakers also stayed positive on Nvidia’s stock, holding his Overweight rating and a $315 price goal. He noted that the $500 billion deal shows how Nvidia is “playing a much bigger game.”
Instead of just selling computer chips, Nvidia is expanding into funding and building full “AI Factories”. Rakers expects this plan to deepen Nvidia’s role in the tech world. This helps the chip giant build long-term sales over time.
Cathie Wood Buys the Dip on NVDA Stock
After dropping 2.8% in the previous trading day, Nvidia stock gained over 1.7% in early morning trading. Cathie Wood’s ARK Invest bought the price drop, adding Nvidia shares across five of its funds.
Bank of America’s $350 target points to a potential price jump of about 61%, while Wells Fargo’s $315 target implies a gain of around 45%.
Is Nvidia a Strong Buy Right Now?
Overall, Wall Street is highly bullish on Nvidia stock (NVDA). On TipRanks, NVDA stock continues to carry a Strong Buy consensus, based on 37 analysts issuing ratings in the past three months. This is based on 36 Buys and one Hold rating. The average 12-month NVDA stock price target is $309.94, implying about 42.5% upside potential from the current price levels. (See NVDA stock forecast)
