BofA raises NVDA price target

What happened: Bank of America (BofA) raised its price target for Nvidia (NVDA) to $350, driven by the chipmaker's strong supply commitments ($119B), dividend hike (nearly 25x), and robust growth projections (85% revenue, 75% gross margins, 50-60% earnings growth). BofA analysts, led by Vivek Arya, cited NVDA's dominance in AI compute as a key catalyst, with nearly every major tech company relying on its chips.

Market impact: The semiconductor sector and AI-focused stocks are positively affected. NVDA's bullish thesis pushes AMD (up 109% YTD) and other AI-related stocks higher. The increased demand for AI infrastructure drives NVDA's supply commitments and growth prospects, benefiting its supply chain and boosting investor confidence in the AI boom.

What to watch next: NVDA's Q2 2027 earnings report (scheduled for late July) will provide insight into its growth trajectory and AI demand. Additionally, any updates on NVDA's AI product roadmap and further dividend increases will be crucial in validating BofA's bullish price target. Lastly, monitor AMD's earnings and any regulatory developments around AI and semiconductor industries for potential competitive or regulatory impacts on NVDA.