Bank of America lifts NVIDIA price target to $320 on $1.7 trillion AI data centre forecast
The bank raised its 2030 total addressable market estimate for AI data centre systems to $1.7 trillion, citing accelerating sales and improving tokenomics through 2026 and 2027.
Bank of America has raised its price target for NVIDIA shares to $320 from $300, maintaining a Buy rating on the semiconductor giant. The adjustment follows an upward revision to the firm’s calendar year 2030 total addressable market forecast for AI data centre systems, which is now estimated at approximately $1.7 trillion, up from a previous projection of $1.4 trillion.
The upgrade underscores the bank’s view that hyperscaler capital expenditure will continue to scale throughout the decade. Bank of America anticipates accelerating AI sales and improved returns on investment in 2026, with 2027 expected to be driven by improving tokenomics as new compute and memory architectures ramp up. The firm cites NVIDIA’s Blackwell architecture and the upcoming Vera Rubin roadmap as key enablers of a flywheel effect, where lower inference costs and expanding accessibility compound demand across enterprise and hyperscaler deployments.
NVIDIA’s recent financial performance supports the bullish outlook. The company closed fiscal 2026 with revenue of $215.94 billion, representing a 66 per cent increase, and net income of $120.07 billion. Data Centre revenue alone reached $62.31 billion in the fourth quarter of fiscal 2026, up 75 per cent year-on-year, while networking revenue surged 263 per cent. CEO Jensen Huang guided first quarter fiscal 2027 revenue to approximately $78 billion, explicitly excluding any Data Centre compute revenue from China.
The move aligns with similar sentiment from other major institutions. Wells Fargo recently lifted its NVIDIA price target to $315 from $265, citing gigawatt-scale demand and the physical buildout of AI infrastructure. Currently, NVIDIA shares trade at $226 with a market capitalisation of $5.46 trillion. The Wall Street consensus target sits at $269.17, supported by 57 Buy ratings against just three Hold or Sell calls.
Despite the strong consensus, analysts note supply-side signals that warrant monitoring. Recent chatter on Reddit flagged a 30 per cent drop in B200 Blackwell rental pricing, a development that could indicate shifting supply dynamics. For investors, the focus remains on quarterly Data Centre growth trends to validate whether the $1.7 trillion market thesis is on track, particularly as hyperscaler custom silicon advances and any moderation in AI capital expenditure would be felt immediately at this scale.
