BofA Securities released a report stating that Nvidia has once again delivered strong results and raised guidance. Although the midpoint of revenue guidance for the second fiscal quarter ending in late July is $91 billion, which is in line with market expectations, this has led to typical post-market volatility. In the past four earnings releases, the stock price has fallen three times after results.

However, the bank points out that, setting aside this noise, the focus should be on NVIDIA's following advantages: the total addressable market (TAM) for AI is expected to grow fourfold over the next four years, surpassing 3 trillion USD by 2030 (previously forecasted at 1.7 trillion USD), with NVIDIA possessing a unique full-stack positioning; industry-leading gross margin of 75%, free cash flow profit margin at around 48%, while significantly raising dividend by 25 times to 0.45%, and planning to repurchase approximately 120 billion USD in shares; demonstrating new leadership in the proxy CPU market, with 20 billion USD in demand already observed for the second half of fiscal 2026, and related memory and wafer capacity already reserved. The bank has raised its earnings per share forecasts for NVIDIA for fiscal 2027 and 2028 by 9% and 15% respectively, to 9.09 USD and 13.27 USD, and has increased the target price from 320 USD to 350 USD, maintaining a “Buy” rating.