'Everyone Has This Wrong,' Says Top BofA Analyst About Nvidia Stock
Bank of America's top analyst, Vivek Arya, argues that concerns about Nvidia's demand and supply limits are misplaced. He maintains an Overweight rating with a $275 price target, suggesting a 50% upside. Arya highlights Nvidia's role in Amazon's AWS cloud AI systems and predicts strong data center sales. Nvidia's stock has a Strong Buy consensus, with a 43% upside potential according to TipRanks.
Nvidia (NVDA) has recently faced several questions about demand, supply limits, and even talk of an AI bubble. But Bank of America's (Bofa) top analyst Vivek Arya said the worry is off the mark. In a new note, he pushed back on the slowdown fears and said the market has the story "completely wrong," pointing to new signs of strong demand coming out of Amazon's (AMZN) recent AWS event.
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The 5-star analyst maintained his Overweight rating on the stock and a price target of $275, which suggests about 50% upside from current levels. It is worth noting that Arya ranks 203 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 59%, with an average return per rating of 17.4% over a one-year timeframe.
AWS Still Leans on Nvidia, Says Analyst
Arya said the latest AWS updates show that Nvidia remains at the center of cloud AI systems. AWS plans to use NVLink Fusion in its next wave of chips, including its Trainium 4 accelerator expected in 2026–27. He said this shows that even big cloud firms building their own chips still rely on Nvidia's core tools.
He added that NVLink Fusion will help AWS scale its new servers through Nvidia's MGX designs, giving Nvidia another long-term win inside one of the world's largest cloud platforms.
Arya said that AWS comments eased "AI bubble" fears, showing that Amazon's cloud unit is still expanding its AI spend and that Nvidia is a key part of that push.
Nvidia Repeats Strong Demand Outlook
The analyst pointed out that Nvidia also spoke at a broker event and repeated that it sees about $500 billion in data center sales over 2025 and 2026.
He stressed that this number does not include the large OpenAI deal, which has not been signed yet. Arya said this adds even more support to Nvidia's long-term story and shows that demand could end up higher than what the market expects.
Is Nvidia a Buy or Sell Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell assigned in the last three months. At $258.10, the Nvidia average share price target implies almost 43% upside potential.
