Nvidia Stock Forecast as Top Wall Street Bank Sees a 60% Surge

Nvidia stock traded near $220 after retreating from its recent highs as investors prepared for next week’s earnings report. Shares closed at $219.74 on Aug. 18 after falling 2.3% during a broader semiconductor selloff.

Bank of America remained bullish despite the pullback. Analyst Vivek Arya maintained a $350 price target and buy rating, citing Nvidia’s valuation, artificial intelligence leadership and cash-flow outlook.

Bank of America Sees Nvidia Stock Reaching $350

Analysts at Bank of America believe that Nvidia has more upside in the coming months. Precisely, they expect it to jump to $350, a 60% increase from the current level, citing its valuation.

The analysts believe that the ongoing AI jitters have made it relatively undervalued. They achieved their target price using the sum-of-the-parts approach. This is a strategy where analysts establish the valuation of a company’s segments and add them together.

Other top analysts tracking the company believe that it has more upside to go. Wells Fargo analysts have placed a target of $315, while KeyCorp have it at $330. Some of the most bullish analysts are from Tigress Financial, Baird, and Evercore.

Nvidia Has Numerous Catalysts

NVDA stock has several catalysts that may boost its performance in the coming months. One of them is that it has now started shipping its H200 chips to China after Beijing eased some of the rules. ByteDance has received 10,000 chips, while other firms have received them in smaller quantities.

In the future, Nvidia will be able to sell thousands of chips a month to companies like Moonshot and Alibaba. This is important because Nvidia has not done any business in China since mid last year. Chinese companies have only accessed these chips through smugglers, including those associated with Super Micro Computer.

Another top catalyst is that Nvidia has recently come up with a new trick to keep the AI hype going on. It recently announced a new $500 billion chip financing deal by coordinating with top companies like Goldman Sachs, BlackRock, and Blackstone. These firms will provide its customers with financing backed by its GPUs. In this, Nvidia will not be exposed to default risk, but will be the first one to benefit.

Nvidia has also made some circular investments by allocating capital to companies like CoreWeave, IREN, and Nebius. These firms will now use these financial resources to buy its chips, boosting its revenue.

Most recently, the company announced a major deal in which it will use $105 billion to back OpenAI’s massive data center in Ohio. According to the deal, Nvidia will be the exclusive chip supplier for the plant.

The company has more room to grow in the foreseeable future. For example, analysts believe that Nvidia’s annual revenue is expected to jump by 82% this year to $394 billion. After that, expectations are that it will make $562 billion. Since Nvidia normally beats estimates, chances are that its revenue will approach $600 billion next year.

NVDA Stock Price Technical Analysis

The weekly chart shows that the Nvidia stock has been in a strong uptrend in the past few years and is still hovering near its all-time high. It has formed an ascending channel and is slowly nearing the upper side.

The stock has also remained above the 100-week moving average, a sign that bulls remain in control. It also sits above the Supertrend indicator. Therefore, the path of the least resistance for the stock is bullish, with the next level to watch being at $236.

On the other hand, a drop below the lower channel boundary will invalidate the bullish outlook and signal more downside.