Bank of America Forecasts $40 EPS for Nvidia Stock in Just 5 Years. Should You Buy NVDA Here?

Core Viewpoint - Nvidia's growth story in artificial intelligence continues to strengthen, with Bank of America projecting earnings could reach $40 per share by 2030 due to high demand for Blackwell chips [1] Group 1: Earnings and Financial Performance - Nvidia reported fiscal Q3 2026 revenue of $57 billion, a 62% year-over-year increase, with data center revenue alone reaching $51.2 billion [5] - The company added $10 billion in sales compared to the previous quarter, marking one of the largest sequential jumps in its history [5] - Bank of America raised its near-term earnings estimates and noted Nvidia's stock is attractively valued, especially with ongoing AI infrastructure spending [3] Group 2: Product Demand and Market Position - Blackwell chip sales are breaking records, with the newer GB300 model accounting for approximately two-thirds of total Blackwell revenue [2][8] - Cloud GPU capacity remains completely sold out across all generations, indicating strong demand for Nvidia's products [2] - Nvidia has visibility into $500 billion in potential revenue from Blackwell and Rubin chips through the end of 2026, with the possibility of this figure increasing [8] Group 3: Strategic Insights - CEO Jensen Huang addressed concerns about an AI bubble, highlighting three major technology shifts that will benefit Nvidia in the coming decade [6] - The shifts include a transition from traditional to accelerated computing, the rise of generative AI replacing older systems, and the emergence of agentic AI systems creating new application categories [7]