Nvidia Corp. (NASDAQ:NVDA) just made history on Wednesday by becoming the world's first $5 trillion company—but according to Bank of America, the AI chip powerhouse still has plenty of fuel left in the tank.
In a note shared Wednesday, the analyst Vivek Arya raised Nvidia’s 12-month price objective from $235 to $275, implying 31% upside from current levels, citing a "very positive meeting" during the GTC event in Washington, D.C.
Bank of America's new price target implies a $6.5 trillion valuation for Nvidia, highlighting its dominant position in an AI chip market the firm sees as still in its early stages.
Shares of Nvidia rose 4.1% on Wednesday and are now up more than 55% year-to-date.
$500 Billion In Orders And Room To Grow
Following a meeting with CFO Colette Kress and the investor relations team—held shortly after CEO Jensen Huang's keynote at the company's GTC event in Washington—Bank of America's analysts walked away with renewed conviction in the company's growth trajectory.
The firm highlighted that Nvidia has already booked more than $500 billion in datacenter orders for calendar years 2025 and 2026. That figure is based on a conservative assumption of $25 billion per gigawatt (GW) of deployed AI compute capacity.
Notably, Nvidia's own investor materials have recently pointed to a range of $30 billion to $40 billion per GW, which suggests potential upside to that $500 billion figure.
The company has visibility into roughly 20 GW of capacity buildout across that timeframe. If pricing skews higher, or if volumes increase, Bank of America believes Nvidia's revenue opportunity could exceed even these already massive estimates.
Zero China Revenue Built In
Notably, the firm's estimates assume no contribution from China in 2025–26, reflecting ongoing U.S. export restrictions.
Bank of America highlighted that any positive outcome from upcoming U.S.-China talks—such as a green light for Nvidia's newer Blackwell chips—would represent incremental upside.
Still, even without China, Nvidia has positioned itself to scale rapidly, thanks to strong supplier alignment and confidence that power constraints won't hold back future GPU shipments.
Nvidia suggested that it could ship more than 10 million Blackwell and Rubin GPUs through 2025 and 2026, assuming demand continues to rise.
The company said it has adequate supply across the board, including for critical technologies like high-bandwidth memory (HBM) and advanced packaging.
Bank of America added that Nvidia's mid-70% gross margins remain sustainable due to its tight integration with memory suppliers and continued product strength.
Valuation Still Looks Reasonable
At $209 per share, Nvidia trades at roughly 36 times projected 2026 earnings, which BofA sees as a compelling valuation compared to its long-term growth rate.
The firm's new $275 price target is based on 44 times 2026 earnings per share, consistent with Nvidia's historical trading range and justified by the company's market leadership, pricing power, and growth visibility, analysts said.
BofA's EPS estimate for 2026 is around $8, which would still leave Nvidia trading at a PEG ratio (price/earnings-to-growth) around 1—well below most of its peers in the Magnificent Seven, many of which trade above 2x.
| Name | P/E (NTM) | PEG (NTM) |
| NVIDIA Corporation | 36.6x | 1.02 |
| Apple Inc. (NASDAQ:AAPL) | 34.8x | 3.49 |
| Microsoft Corporation (NASDAQ:MSFT) | 34.6x | 2.93 |
| Alphabet Inc. (NASDAQ:GOOGL) | 27.1x | 1.80 |
| Amazon.com, Inc. (NASDAQ:AMZN) | 33.2x | 1.76 |
| Meta Platforms, Inc. (NASDAQ:META) | 26.1x | 1.67 |
| Tesla, Inc. (NASDAQ:TSLA) | 225.6x | 10.28 |
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