Investors are glued to Nvidia (NVDA) shares this morning after the chipmaker inched higher to become the world’s first $4 trillion company.
Vivek Arya, a senior Bank of America analyst, remains convinced that NVDA shares are not done rewarding investors just yet.
Including today’s gain, Nvidia stock is up nearly 90% versus its year-to-date low on April 4.
Why Does BofA Remain Bullish on Nvidia Stock?
Arya sees potential for significant further upside in NVDA stock primarily because the AI darling is much more profitable than other Magnificent 7 stocks, including Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).
Consensus estimates for 2026 suggest “Nvidia’s net income will be 20% higher than MSFT and up to 45% higher than Apple and Amazon,” he told CNBC in an interview on Wednesday.
Additionally, the company has a dominant market share (80%) in the fast-growing artificial intelligence market, which the BofA expert believes will prove sufficient to drive its share price up further in the second half of 2025.
Bank of America currently has a “Buy” rating on Nvidia shares with a price target of $180, which indicates potential for another 10% gain from current levels.
Custom AI Chips Are Not a Threat for NVDA Shares
Speaking this morning with CNBC, Vivek Arya also downplayed concerns that custom AI chips could pose a meaningful threat to Nvidia’s business moving forward.
According to him, the likes of Amazon or Google (GOOGL) that are investing heavily in custom chips will fail to dislodge Nvidia’s dominance in the AI market.
Why? Because the “challenge custom chips face is that the requirements of generative artificial intelligence models are changing so rapidly that it’s hard to keep up.”
Moreover, developments like DeepSeek are actually net positives for NVDA shares as well, the BofA analyst added.
Wall Street Sees Further Increase in Nvidia’s Market Cap Ahead
Other Wall Street analysts also remain convinced that Nvidia’s leadership in AI will translate to further growth in its market cap in the back half of this year.
The consensus rating on NVDA share currently sits at “Strong Buy” with the mean target of about $177 indicating potential upside of some 8% from current levels.
