Nvidia Stock Could Be 50% Undervalued, but $400 Billion AI Boom Fuels 51% Upside

• BofA says Nvidia stock could be 34% to 50% undervalued, maintaining a $350 price target
• Wall Street remains firmly bullish on NVDA, with your 30-analyst forecast showing a $328.43 average target and about 51% upside
• Jensen Huang says $400 billion has been invested in AI startups in six months, underscoring the scale of the spending cycle supporting Nvidia’s business

Nvidia stock is getting another bullish call from Wall Street. Bank of America says the stock could be undervalued by as much as 50%, adding to an already strong run of analyst optimism around NVDA. This comes after Nvidia reported $96.2 billion in quarterly revenue, up 106% from a year earlier. With AI spending still surging, investors are now looking at how much further the stock could run.

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Nvidia Stock Gets a Fresh 50% Valuation Case

Bank of America analyst Vivek Arya believes Nvidia could be undervalued by 34% to 50%, even after accounting for the risks around its growing investments in the AI ecosystem. BofA has kept a Buy rating and a $350 price target on the stock. Currently, NVDA is priced at $217.55 following a 4.57% drop over the past day.

This is a fairly aggressive call, especially for a company that has already become one of the biggest forces in the stock market. But Nvidia’s latest results give the bulls plenty to point to.

The company reported $96.2 billion in quarterly revenue, up 106% from the same period last year. Data Center revenue was even stronger, climbing 117% to $89 billion. Nvidia also expects revenue of about $108 billion for its current quarter.

Those figures help explain why the debate around Nvidia earnings has moved beyond whether the company can beat estimates. Investors are now watching how long Nvidia can sustain growth at this scale.

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Wall Street Sees More Room for NVDA

Data shown in the latest 12-month forecast has 30 analysts rating Nvidia a Buy, with no Hold or Sell ratings. Their average price target stands at $328.43, representing about 51% upside from its current price.

The range is wide, though. The highest target sits at $515, while the lowest is $250. This gap says plenty about the uncertainty surrounding NVDA, even with the overwhelmingly bullish ratings.

This comes amidst a notable spending story. Nvidia CEO Jensen Huang recently said $400 billion has been invested in AI startups in just six months, while arguing that AI is driving new investment in data centers, power, and manufacturing.

Nvidia’s case now comes down to whether it can keep growing at anything close to the pace investors have come to expect. The AI buildout is still driving huge demand for its chips, but the stock is also carrying much higher expectations. This leaves investors looking at the strength of Nvidia’s business against how much of that growth is already reflected in NVDA’s price.

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