‘Don’t Ignore Nvidia’s AI Momentum,’ Says Bank of America’s Top Analyst

Nvidia (NVDA) continues to stand out as a leading player in the AI boom, and analyst commentary shows growing confidence in the company. Bank of America analyst Vivek Arya recently took part in investor events in San Francisco, including a private dinner and a keynote talk with Nvidia’s leaders. He said the mood was “very positive” about demand and strong customer interest in both cloud and business sectors. He added that Nvidia remains a “top sector pick,” well placed to benefit from the “ongoing AI wave.”

Following these meetings, the 5-star analyst reiterated his Buy rating on Nvidia and maintained a $180 price target. Importantly, he noted that the company addressed three of the most critical investor concerns that have restrained the stock over the past year:

1. Blackwell Rack Ramp and Execution: Arya noted that Nvidia’s rollout of the Blackwell architecture is progressing well. The GB200 NVL rack-scale systems are now “fully ramping,” contributing about 70% of compute sales in the latest quarter. Production of the follow-on Blackwell Ultra (GB300) is set to begin in Q2, while Rubin and Feynman remain on track, keeping Nvidia’s annual release cadence intact. Management also expects smooth transitions across generations with “limited associated ramp-up costs,” supported by its growing rack-scale experience.
   
   
2. AI Diffusion and Sovereign Demand: The analyst pointed to sovereign AI as a promising new growth vector, especially following the recent lifting of AI Diffusion export rules. Management believes sovereign governments and their partners—such as CSPs and neoclouds—will increasingly build their own foundational and frontier models, expanding Nvidia’s addressable market beyond traditional hyperscalers.
   
   
3. China AI Shipments Fully De-Risked: Addressing one of the more persistent investor concerns, Arya emphasized that Nvidia now considers its China exposure “fully de-risked” following the H20 export restrictions and associated write-offs. Management confirmed that no China-related sales are included in current data center forecasts, meaning any future sales into the $50 billion China AI TAM would be incremental upside.

What Is a Good Price for NVDA?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $172.36 per share implies 21.45% upside potential.

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