Nvidia Beats, Stock Drops: BofA Says Buy the Dip

Nvidia just delivered the biggest revenue quarter in its history-$81.6 billion, up 85% from last year. The stock fell anyway. Bank of America isn't fazed. Analyst Vivek Arya reiterated a buy rating and raised the price target to $350, implying 56.6% upside from the current $223.47.

Data center revenue hit $75.2 billion, up 92% year-over-year. Earnings per share came in at $1.87, beating estimates. CEO Jensen Huang said, "Agentic AI has arrived."

BofA sees the total AI market hitting $3 trillion by 2030, with Nvidia holding 78% of the AI accelerator market. The bank also raised its estimate for the agentic CPU market to $200 billion. Customer purchase commitments reached $145 billion, up from $95 billion last quarter.

The biggest risk: Nvidia now makes up 8.3% of the S&P 500, and custom chips from Google and others threaten its dominance. Still, BofA expects Nvidia to maintain over 70% market share long-term.