Bank of America Raises NVIDIA Target to $320 — 42% Upside as Blackwell Demand Tops $1 Trillion

Bank of America analyst Vivek Arya raised his NVIDIA price target from $300 to $320, implying roughly 42% upside from the May 15 closing price of $225. The upgrade lands just days before NVIDIA's quarterly earnings, scheduled for Wednesday (US time), and reflects broad Wall Street optimism heading into the print.

65% Revenue Growth — An Unprecedented Financial Trajectory

The upgrade is grounded in NVIDIA's financial performance. For fiscal year 2025 (February 2024–January 2025), NVIDIA posted revenue growth of approximately 65% year over year. For a company at this scale, that rate of expansion is virtually without precedent in the semiconductor industry.

Operating margins have held above 50%, sustaining profitability that supports a premium valuation. Bank of America views this earnings structure as the foundation for continued multiple expansion.

Blackwell and Rubin: $1 Trillion in Demand Through 2027

CEO Jensen Huang has stated publicly that demand for the Blackwell architecture and its successor, Rubin, exceeds $1 trillion through 2027. The evidence that this figure is grounded in reality lies in hyperscaler ordering behavior.

Microsoft, Alphabet, Amazon, and Meta have all raised their 2026 AI infrastructure budgets. Combined, these four companies are expected to spend over $300 billion on AI-related capex in 2026 alone. With NVIDIA holding more than 80% market share in datacenter GPU supply, that spending flows almost directly into NVIDIA's backlog.

Blackwell Architecture: The Default Platform for the Inference Era

Blackwell arrived at the inflection point where AI workloads shifted from training to inference. Inference runs 24/7 — unlike training jobs — and therefore consumes more sustained GPU capacity per application. As chatbots, coding assistants, video generation, and autonomous systems scale, Blackwell demand has exceeded supply since launch.

A single Blackwell GB200 NVL72 rack costs over $2 million. Hyperscalers are ordering these in the thousands. The Rubin architecture, Blackwell's successor, is on track for production in late 2025 to 2026.

Pre-Earnings Bullishness: Wall Street in Alignment

The timing of this upgrade is notable. According to LSEG data, more than 90% of the analysts covering NVIDIA maintain a buy rating. The consensus price target average sits below the Bank of America target, but the high-end estimates exceed $200. If NVIDIA guides above consensus on Wednesday, the gap between current price and the $320 target could narrow quickly.