Analysts at Bank of America, led by Vivek Arya, have updated their research report on NVIDIA.

The firm's analysis projects that sales of the Vera CPU in the second half of fiscal year 2027 could reach $20 billion. Furthermore, the annualized revenue run-rate for the product in the following fiscal year is expected to surpass $50 billion, potentially positioning NVIDIA among the world's leading server CPU suppliers.

Arya wrote in the report: "NVIDIA's hardware moat continues to widen. Its addressable market is expanding from traditional GPU racks to encompass CPUs, optical interconnects, storage security, enterprise software, and now, with the addition of the personal AI PC segment."

The analysts estimate that products equipped with RTX Spark, targeting the high-end Windows market's top 10% of customers as competitors to Apple's Mac Mini and MacBook Pro, could achieve annual shipments of 25 to 30 million units.

Bank of America maintains a Buy rating on NVIDIA with a price target of $350. This valuation is based on a 26x price-to-earnings multiple for calendar year 2027, excluding cash, which falls within NVIDIA's historical forward P/E range of 25x to 56x.