Bank of America Reaffirms Nvidia Bullish Stance, Forward P/E at 18.7x Hits 11-Year Low

NVDA3.66%
According to Bank of America research released on July 9, Nvidia's forward P/E ratio of 18.7x is approximately half the 10-year average of 37x, marking its lowest valuation in 11 years. BofA argues that market concerns over HBM (high-bandwidth memory) cost increases and ASIC competition have been overstated, and underestimate Nvidia's pricing power, supply chain advantages, and ecosystem moat. The bank projects Nvidia's gross margin will remain around 75% amid the upcoming Rubin AI platform launch, supported by a $119 billion supply chain commitment that further strengthens cost competitiveness.
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