Nvidia (NVDA), the AI chip leader, is gaining more support on Wall Street as analysts focus on its massive cash flow. Top BofA Securities analyst Vivek Arya recently kept a Buy rating and a $300 price target on the stock, naming it a “top sector pick.”
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Forget margin or options. Here's how the pros trade NVDAIt is worth noting that Arya ranks 84 out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 64%, with an average return per rating of 27.70% over a one-year timeframe.
BofA Analyst Sees Upside from Cash Returns
Arya believes that Nvidia is ready to shift toward higher shareholder returns now that its major AI spending is mostly complete. This change could lead to more dividends and buybacks, making the stock more attractive for passive income and income-focused investors.
Looking ahead, Arya expects Nvidia to generate over $400 billion in free cash flow across 2026 and 2027, roughly matching Apple (AAPL) and Microsoft (MSFT) combined. Despite this strength, the stock trades at less than 20x its 2027 earnings, well below the 41.5x average for “Magnificent Seven” peers, leaving room for upside.
He also noted that Nvidia trades at about a 30% lower market cap-to-free cash flow multiple, reflecting investor concerns around growth and capital use. Arya believes increased cash returns could improve confidence and help close this valuation gap over time.
Is NVDA Stock a Buy?
Nvidia’s stock has a consensus Strong Buy rating among 42 Wall Street analysts. That rating is based on 40 Buy, one Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $273.57 implies 31% upside from current levels.
