BofA Says This Nvidia Price Level Is the One to Watch Before Earnings

Nvidia (NASDAQ:NVDA) shares cleared a multi-week trading range near $217 in early August, and Bank of America's global research team identified a specific price level it expects the stock to reach next.

A breakout from a sustained range often matters to investors evaluating where you stand financially with a position, because it can signal the start of a new leg higher or a setup for a reversal. BofA sees this one as the former, with Q2 earnings on August 26 adding a catalyst. The technical target, the fundamental case, and the risks around earnings all factor into the call.

Nvidia stock could reach $260 to $263 after breaking above $217

Bank of America's global research team identified $260 to $263 as the next technical target for Nvidia after the stock cleared a multi-week trading range near $217, with shares up 14.6% year to date, as reported by Seeking Alpha. The firm described the technical momentum as strengthening.

A breakout from a defined range means the stock moved above a price level where buying and selling had been roughly balanced for weeks. The $260 to $263 zone represents the next area of potential resistance, and reaching it would mark a roughly 20% gain from the breakout level.

BofA gives Nvidia stock a $350 price target

Bank of America is doubling down on Nvidia ahead of its Q2 earnings report on August 26. The firm named Nvidia its top chip pick, raised its price target to $350, and forecasts long-term earnings to top $25 per share by 2030, according to Blockonomi.

The gap between a $217 stock price and a $350 target implies roughly 61% upside, which is well above the typical range for a mega-cap recommendation.

Nvidia's Vera Rubin chips could drive its next growth cycle

BofA expects the start of Vera Rubin next-generation chip deliveries to trigger an extended upgrade cycle spanning multiple quarters, as noted in a Yahoo Finance report on the firm's analysis. Vera Rubin NVL computing racks may cost between $7 million and $8.5 million, compared with approximately $4 million for the current Blackwell Ultra generation.

The price increase on next-generation systems creates a revenue tailwind that BofA views as underappreciated. Your assessment of Nvidia near these levels likely depends on whether you expect the Rubin cycle to sustain the growth trajectory Blackwell established.

Nvidia earnings could nearly double from 2026 to 2027

BofA projects Nvidia's EPS rising from $4.55 in calendar 2026 to $9.09 in calendar 2027, with long-term earnings exceeding $25 by 2030, as detailed by Blockonomi. Key projections from BofA's research include the following.

• Calendar 2026 EPS of $4.55.
• Calendar 2027 EPS of $9.09, nearly doubling year over year.
• EPS above $25 by 2030.
• AI data center total addressable market of $1.7 trillion by 2030.
• Gross margins settling into a 73% to 74% range.

BofA says rising memory costs pose little risk to Nvidia margins

DRAM expenses now account for 40% to 50% of Nvidia's total production costs, up sharply from a historical range of 15% to 20%, but BofA dismissed the concern as overblown and estimated the margin impact on Vera Rubin racks at just 60 basis points, as reported by BigGo Finance.

Nvidia's long-term supply agreements with chipmakers like SK Hynix provide a buffer against price spikes, in BofA's view. The firm expects gross margins to hold in the 73% to 74% range, down only modestly from the current 75% level.

Nvidia earnings on August 26 could test the stock's breakout

Nvidia guided Q2 fiscal 2027 revenue to $91 billion, and Wall Street consensus sits above that figure near $93.5 billion. BofA expects a beat-and-raise cycle driven by Vera Rubin shipments and sustained hyperscaler demand.

The risk for your position is that any guidance below expectations could reverse the technical breakout BofA identified. Nvidia has beaten estimates in each of its last four quarters, but the stock has not always rallied in response, particularly when forward spending commentary overshadowed the results.

S&P 500 investors already have significant exposure to Nvidia

Nvidia represents approximately 7% of the S&P 500 by weight, meaning any broad U.S. index fund in your portfolio already gives you meaningful exposure to the stock. A $100,000 position in an S&P 500 index fund includes roughly $7,000 worth of Nvidia at current weights.

The BofA call does not change the math for investors who already own Nvidia through diversified funds. The question is whether the technical breakout and the earnings catalyst justify adding a direct position on top of existing index exposure, and BofA's answer is yes.

Bottom line

BofA identified $260 to $263 as the next technical target after Nvidia cleared $217, backed by a $350 fundamental price target and an EPS forecast that nearly doubles from 2026 to 2027. The Q2 earnings report on August 26 is the next data point that either validates the breakout or tests it, with hyperscaler capex trends and rollout momentum for the Vera Rubin architecture worth observing.

Knowing when to start investing in a technical breakout means accepting that the entry looks better on the chart than it did a month ago, while recognizing that August 26 could change the picture quickly.

This article is for informational purposes only and should not be considered investment advice.

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