Bank of America said that since investors exaggerated the risks associated with this AI chip leader, Nvidia's stock price could be discounted by as much as 50%. The bank's analysis showed that even when financing risks were taken into account, the stock was discounted by 34% to 50%, and this discount “may have exaggerated the risk and created a very attractive opportunity.” Bank of America gave the stock a “buy” rating, with a target price of $350, and suggested that Nvidia could ease market concerns about declining profit quality by using a larger share of free cash flow to share buybacks.

Bank of America said that since investors exaggerated the risks associated with this AI chip leader, Nvidia's stock price could be discounted by as much as 50%. The bank's analysis showed that even when financing risks were taken into account, the stock was discounted by 34% to 50%, and this discount “may have exaggerated the risk and created a very attractive opportunity.” Bank of America gave the stock a “buy” rating, with a target price of $350, and suggested that Nvidia could ease market concerns about declining profit quality by using a larger share of free cash flow to share buybacks.