Bank of America: NVIDIA's Lowest Valuation in Seven Years, Reiterates Buy Rating with $350 Price Target

According to TechFlow Research, Bank of America reaffirmed its Buy rating for NVIDIA in a July 7 research report, with a price target of $350 versus the current $195.55, implying 79% upside. NVIDIA is currently trading at 15.7x expected 2027 P/E ratio, the lowest in seven years, representing a 30-35% discount to tech peers. BofA believes the market has overestimated risks such as HBM cost pressure and custom ASIC competition. Vera Rubin inference performance per watt is 10x higher than Blackwell, and gross margin is expected to remain at 75%. NVIDIA's sales to hyperscale customers increased 115% year-over-year, nearly twice the growth rate of cloud capex. Crowded positioning and $65 billion in ecosystem investment are risks but have been priced into the valuation.