Nvidia’s smothering market share leads BofA to raise EPS estimate

Nvidia’s (NASDAQ:NVDA) market share of 80% to 85% in a $400B total addressable market has led BofA Securities to increase its earnings per share estimates for the years ahead.

BofA increased Nvidia’s full year 2025 EPS estimate to $2.87 from $2.81; the 2026 estimate to $4.47 from $3.90; and 2027 to $5.67 from $4.72.

The investment firm also reiterated its Buy rating and increased its price target on the stock to $190 from $165. Nvidia shares have flirted with new highs this week.

“We note NVDA’s underappreciated FCF generation at 45-50%+ margin, nearly double that of the Mag-7 average of 23-25%,” said BofA analysts, led by Vivek Arya, in a Thursday investor note. “In dollar terms, NVDA could take in $200B+ of FCF over the next two years, rivaling that of Apple (AAPL) and providing growth optionality.”

BofA also highlighted Nvidia’s growing role in enterprise partnerships, such as Accenture (ACN), ServiceNow (NOW) and Microsoft (MSFT).