BofA's Vivek Arya Raises Nvidia Price Target to $350

Bank of America analyst Vivek Arya raised his price target on Nvidia (NASDAQ:NVDA) to $350, significantly above consensus, during an appearance on CNBC. The stock currently trades near $215, implying a potential upside of about 63%. Arya bases his bullish view on an unprecedented semiconductor cycle driven by agentic AI.

Recommendation Change

Prior to this update, Arya's price target was lower than $350 (exact prior target not disclosed). He maintains a "Buy" rating on the stock. The new target is well above the average analyst target of around $280.

Analyst's Rationale

Arya believes agentic AI represents the next wave of demand for Nvidia's chips, surpassing large language model training. He expects this cycle to drive unprecedented growth in data center sales, boosting Nvidia's revenue for years. He also notes that Nvidia is still in early innings of broad AI adoption.

Context

The recommendation follows a strong year for Nvidia, with shares more than doubling. Other analysts, such as those at Goldman Sachs and Morgan Stanley, have lower targets ranging from $250 to $300. Arya's upgrade could prompt upward revisions from peers in the coming weeks.

What to Make of This

Arya's call reflects strong conviction in Nvidia's trajectory amid rising AI demand. However, investors should consider risks such as high valuation and competition from AMD and Broadcom.