Bank of America reiterated its Buy rating and $300 price target for Nvidia. Analysts identify a pivot toward increased shareholder returns as the next major catalyst for the stock.
The firm projects Nvidia will generate over $400 billion in free cash flow across 2026 and 2027 combined. Expanding dividend and buyback programs could attract a wider range of income-oriented investors.
BofA notes Nvidia currently trades at a significant price-to-earnings discount compared to its Magnificent Seven peers. Enhanced capital returns would signal confidence in growth sustainability and potentially trigger a stock re-rating to narrow the valuation gap.