Nvidia (NVDA) stock closed the June 1 trading session up 6.26% at $224.36. The stock is now up about 20.3% year to date, at the time of writing, Tuesday morning, June 2.
Meanwhile, the SPDR S&P 500 Index (SPY) is up about 11.24% in the same period. While Nvidia was expected to outpace the S&P 500, this June 1 jump propelled the stock into a slight lead over Alphabet (GOOGL), which previously led the Magnificent 7 in year-to-date gains.
Here is how the rest of the Magnificent 7 members have performed:
- Alphabet is up 20.25%.
- Amazon (AMZN) is up 13.19%.
- Apple (AAPL) is up 12.67%.
- Microsoft (MSFT) is down 4.78%.
- Tesla (TSLA) is down 7.52%.
- Meta (META) is down 9.03%.
Nvidia owes its boost to the GPU Technology Conference (GTC) at Computex. The company made big announcements, worthy of Bank of America’s analysis.
Key news for Nvidia stock:
- The company reported strong Q1 earnings.
- Nvidia invested $2 billion in Marvell (MRVL).
- Nvidia teamed up with IREN to deploy up to 5 GW of AI infrastructure.
- It used the GTC in March to unveil the Groq 3 LPX accelerator.
- Nvidia recently delivered its first Vera CPUs.
Key announcements from GTC at Computex
Nvidia confirmed at GTC Taipei that its Vera Rubin platform is ramping into full production.
Vera Rubin platform unifies NVL72 systems, Vera CPU, Groq 3 LPX, Vera BlueField-4 STX storage, and Spectrum-6 SPX Ethernet racks into a fully integrated system. According to the company, Vera Rubin delivers 10x agent throughput at scale compared with the previous-generation Grace Blackwell platform.
The company said hundreds of its supply chain ecosystem partners, across more than 350 factories and 30 countries, are ramping up Vera Rubin.
The company unveiled RTX Spark, a new superchip for Windows PCs designed to run personal AI agents.
“The PC is being reinvented,” stated Jensen Huang, founder and CEO of Nvidia, in the press release. “For forty years, you launched apps. Click. Type. With RTX Spark and Microsoft Windows, you ask — and the PC does the work. RTX Spark brings everything Nvidia has built — CUDA, RTX, our AI platform — into a single superchip. Local agents. Frontier models. Creative workflows. RTX games. All on a laptop. This is the new PC. The personal AI computer.”
The RTX Spark superchip is based on a previous-generation architecture and features a Blackwell RTX GPU with 6,144 CUDA cores, connected via NVLink to a 20-core Grace CPU.
Paul Morris/Bloomberg/Getty Images
Bank of America calls Vera CPU “single greatest new addition since the GPU”
Following the announcements in a research note shared with me, Bank of America analyst Vivek Arya and his team updated their opinion on Nvidia stock.
The team said the outlook for Vera CPU sales in the second half of fiscal 2027 is approximately $20 billion. It is also expected that by next fiscal year, the annual run rate will hit $50 billion or more, leading analysts to expect that Nvidia will become the largest server CPU vendor.
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“Overall, we see a continued strengthening of [Nvidia]’s systems moat and expanding [serviceable addressable market] from GPU racks to CPUs, networking/optics, storage/security, enterprise software, and now personal AI PCs,” Arya wrote.
Analysts said RTX Spark-based devices can be compared to the Apple Mac Mini or MacBook Pro, which means they will likely target the top 10% of the Windows market, in the range of 25 to 30 million units sold per year.
Arya reiterated a buy rating for Nvidia stock and a price target of $350, based on a 26 multiple of his estimate of the price-to-earnings ratio excluding cash for calendar year 2027, which is within Nvidia’s historical forward-year P/E range of 25 to 56.
Analysts noted downside risks for Nvidia:
- Weakness in the consumer-driven gaming market
- Competition with major public firms
- Larger-than-expected impact from restrictions on compute shipments to China
- Lumpy and unpredictable sales in new enterprise, data center, and auto markets
- Potential for decelerating capital returns
- Enhanced government scrutiny of Nvidia’s dominant market position in AI chips
What do other analysts think, and how does Bank of America’s opinion compare? According to MarketBeat, 50 of the 53 analysts covering Nvidia stock rate it a buy. Only three give a hold rating. The average price target is $305.38.
Related: Bank of America resets Amazon stock forecast at tipping point