Nvidia’s $5B Windfall: Bank of America Breaks Down the AI Gold Rush
Nvidia (NVDA) just hit the jackpot—Bank of America predicts a $5 billion boost from the AI arms race. Here’s why Wall Street’s salivating.
Chips on fire
AI workloads demand Nvidia’s GPUs like oxygen, and data centers can’t snap them up fast enough. BofA’s upgrade sends NVDA stock flirting with fresh ATHs—because nothing fuels FOMO like a good old-fashioned silicon shortage.
The cynical take
Meanwhile, hedge funds are quietly dumping their crypto bags to ride the AI hype train. Some things never change—the hot money just migrates to the next ’paradigm shift.’
Source: Reuters / Andrew Kelly
Nvidia Will Get a $5 Boost That Could be Massive, Bank of America Says
Approaching the midpoint of the month, the US stock market is in a rather strong position. Despite a volatile start to the year, the S&P 500 has risen for the fourth consecutive day. Moreover, it continues to gain as it has already erased all of its 2025 losses earlier in the week.
That development has many traders optimistic that some of the biggest disappointments of the year will cease to be. Among them is Nvidia (NVDA), which is set to get a major $5 billion revenue boost that Bank of America recently discussed. Specifically, they used the information to update their outlook on the stock.
The firm recently raised its price target for the stock to $160, noting growing sovereign AI demand for infrastructure products. Indeed, it noted the recent partnership with a Saudi Arabian subsidiary could generate between $3 billion and $5 billion annually. Over multiple years, the deal is expected to produce a value of $20 billion.
That reassures the stock’s stability among those who had concerns over AI spending. Bank of America analysts note that Nvidia is expecting $7 billion in direct contract value, according to a report. Moreover, Phase 1 of its Saudi Arabian partnership will sell 18,000 Blackwell GPUs for around $700 million.
