BofA reiterates Nvidia top pick: FY28 70% growth is a floor, stock at ~16x CY27 PE, lowest in a decade

firstadopter · x · 2026-09-03

After hosting Nvidia IR head Toshiya Hari for a post-2Q27 fireside, BofA reiterated Buy and top sector pick on Nvidia:

• The 70% FY28 growth guide is a floor — bottoms-up demand runs 2x supply — with no expected share loss;
• Memory and substrate wafers are the top constraints, but LTAs give solid FY28 GM visibility;
• The $25bn to $40bn/GW content ramp assumes the full reference design, with $40bn a practical ceiling;
• The $105bn OpenAI guarantee burns down as leases are paid, with no cash out unless default;
• The six-partner backstop is an up-to-25% option vs. peers reportedly north of 80%.

At 16x CY27 PE / 0.3x PEG, the stock trades at its lowest valuation in 10 years; BofA sees memory and circular-financing concerns as overblown.

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