Bank of America raises NVIDIA price target to $320 on $1.7 trillion AI data center infrastructure TAM forecast.

Bank of America raised its price target on NVIDIA (NASDAQ:NVDA) to $320 from $300 on Wednesday, reiterating its Buy rating and lifting its calendar year 2030 AI data center systems total addressable market forecast to approximately $1.7 trillion from $1.4 trillion previously. The firm sees 2026 as a year of accelerating AI sales and returns on investment, with 2027 driven by improving tokenomics as new compute and memory architectures ramp.

The upgrade reflects growing confidence that hyperscaler capex will continue scaling through the decade, positioning NVIDIA as the lead beneficiary of a longer AI infrastructure cycle. As the dominant supplier of AI accelerators, NVIDIA is positioned to capture the largest share of incremental opportunity across hyperscaler and enterprise buildouts.

The firm's tokenomics thesis underpins the call. As inference workloads scale, lower cost per token expands accessibility and compounds demand—a flywheel that NVIDIA's Blackwell ramp and Vera Rubin roadmap are designed to power. The upgrade reflects confidence that these architectural advances will support expanding token efficiency while driving higher volumes across deployments.

NVIDIA closed fiscal 2026 with revenue of $215.94 billion, up 66 percent, and net income of $120.07 billion. Data Center revenue reached $62.31 billion in Q4 FY2026 alone, up 75 percent year over year, with networking up 263 percent. CEO Jensen Huang stated that "Computing demand is growing exponentially, the agentic AI inflection point has arrived," while guiding Q1 FY2027 revenue to approximately $78 billion, explicitly excluding any Data Center compute revenue from China.

NVIDIA stock currently trades at $226 with a market cap of $5.46 trillion and a P/E ratio of 45x. Wall Street consensus sits at $269.17, with 57 Buy ratings against three Hold or Sell calls.

This marks the second outsized price-target hike in a week. Wells Fargo recently lifted its NVIDIA target to $315 from $265 using a similar gigawatt capacity model, suggesting the bull case is now anchored to physical AI buildout and gigawatt-scale demand. NVIDIA shares are up 74 percent over the past year and 21 percent year to date, with the bull case resting on continued AI infrastructure demand, architectural leadership from Blackwell to Rubin, and the tokenomics flywheel.

Hyperscaler custom silicon continues advancing, and at this scale, any AI capex moderation would register immediately. Recent reports flagged a 30 percent drop in B200 Blackwell rental pricing—a supply-side signal worth monitoring as the market assesses whether the $1.7 trillion thesis remains on track.