Bank of America Sees Nvidia Trading at a Significant Discount - FJElite

Bank of America estimates Nvidia could be trading at a 34% to 50% discount based on a conceptual sum-of-parts analysis of free cash flow, even after accounting for financing risks. The bank argues that investors may be overstating the risks around Nvidia and the broader AI trade, creating a potentially compelling valuation gap.

Nvidia shares fell 2.5% to $219 on Tuesday amid a broader selloff in AI-related stocks. The stock is still up around 18% this year but remains about 7% below its May peak.