Nvidia’s (NVDA) stock presents a “particularly attractive opportunity” due to its “compelling valuation,” according to a top analyst at Bank of America Securities. Five-star analyst Vivek Arya reaffirmed his bullish view on NVDA stock, despite uncertainties related to the ongoing trade tensions and the potential for further ban on Nvidia’s chip exports.
Notably, NVDA stock has already lost 17% so far in 2025, but Arya cautions investors to brace for further impact as geopolitical uncertainties persist. He highlighted that investors should wait until May 15 (Liberation Day) for more clarity on the government’s “AI Diffusion Rules” on Nvidia’s future earnings. These rules aim to control the supply of advanced AI chips outside of the limited group of 18 countries.
Arya Explains Nvidia’s Compelling Valuation
Arya has set a price target of $200 for NVDA stock, implying an impressive 79.5% upside potential from current levels. Currently, the stock trades at around $111, which according to him, is relatively cheap considering its P/E (price-earnings per share) multiple. For FY26, the analyst projects a P/E ratio of 20x in a bull case scenario and 26x in a bear case scenario. Both ratios are well below Nvidia’s historical average of a 36x P/E multiple. Additionally, the valuation is considered attractive when compared to its large-cap peers, with Nvidia offering superior growth potential.
The analyst expects Nvidia’s stock to recover sharply once geopolitical concerns are fully priced in. According to Arya, Nvidia has a roughly 10% direct exposure to China’s data center market, which could be partially offset by a growing demand from American hyperscalers and other companies. Moreover, the analyst believes that concerns surrounding Nvidia’s gross margins should fade as the company reports improved performance in the second half of the year.
Arya was also impressed with Nvidia’s recent management meetings at the GTC conference and expects margins to improve as the company accelerates the pace of its new B300 Blackwell Ultra processors. Overall, Arya is impressed with Nvidia’s “exceptionally strong fundamental” and “compelling valuation,” which he believes are poised to drive the stock higher. Arya ranks #478 out of the 9,445 analysts ranked on TipRanks. The analyst has an average return per rating of 11.5% and a success rate of 50%.
Is NVDA a Good Stock to Buy Now?
Most analysts share similar views on Nvidia’s stock as Arya. On TipRanks, NVDA stock commands a Strong Buy consensus rating based on 39 Buys and three Hold ratings. Also, the average Nvidia price target of $176.54 implies 58.4% upside potential from current levels.
