Nvidia's (NVDA) full-stack AI portfolio is uniquely positioned to benefit from rapid growth in the AI market, which could expand to a $3 trillion to $4 trillion total addressable market by 2030, BofA Securities said.
The brokerage said in a Wednesday research report that it raised its fiscal 2027 and 2028 EPS guidance by 9% and 15%, respectively, to $9.09 and $13.27. It cited the company's full-stack positioning, higher gross margins, free cash flow and emerging leadership in agentic CPU of a $200 billion total addressable market.
The investment firm said it likes the company's diversification of growth engines across hyperscale and AI cloud. Furthermore, growth outlook remains supported by purchase commitments of $145 billion, according to the note.
BofA reiterated its buy rating on the stock and raised its price objective to $350 per share from $320.
Shares of Nvidia were down more than 2% in Thursday trading.
Price: 218.71, Change: -4.76, Percent Change: -2.13
