Every few quarters, the debate around Nvidia moves. For a while, it was about whether AI demand was real. Then it was about whether margins could hold. Now, heading into its August 26 earnings report, the question is whether the next product cycle can keep a company already running at this pace from slowing down.
Bank of America thinks it can. And the note behind that view is worth reading before the earnings date arrives.
Bank of America Nvidia earnings preview and $350 price target
In a note shared with TheStreet on August 7, Bank of America analyst Vivek Arya called Nvidia (NVDA) his top sector pick ahead of the company’s fiscal Q2 FY2027 results. He expects revenue of $94 billion to $95 billion, roughly $3 billion to $4 billion above Nvidia’s own $91 billion guidance. That guidance excludes any China data center compute revenue, meaning actual results could come in higher if modest shipments to that market resume. Third-quarter guidance, he says, should come in at $107 billion to $108 billion, well above the approximately $104 billion Wall Street is currently modeling.
For context, Nvidia reported Q1 FY2027 revenue of $81.6 billion in May, up 85% year over year, with data center revenue of $75.2 billion. The Q2 guidance of $91 billion implied continued sequential growth. BofA’s $94 billion to $95 billion estimate would extend that momentum further.
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But Arya isn’t really writing about the next quarter. “The commencement of Vera Rubin next-generation chip deliveries marks the beginning of an extended upgrade cycle spanning multiple quarters,” he wrote. That’s the argument. Not just a beat. A new cycle.
Arya has a $350 price target on Nvidia, representing roughly 56% upside from $223.96 at the time of the note. He points out that the stock is trading at about 16 times forward earnings, its lowest valuation in roughly a decade, even as the earnings trajectory continues to rise, as TheStreet reported.
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