**[Bank of America Maintains "Buy" Rating on NVIDIA, Target Price $350]** BlockBeats News, August 26: Bank of America has maintained its "Buy" rating on NVIDIA (NVDA) with a target price of $350. The bank anticipates that NVIDIA's second-quarter revenue and guidance may exceed market expectations by 3% to 4%, driven by the mass production expansion of Vera Rubin. However, it believes that the performance figures are not the most critical focus of this earnings report. Bank of America stated that the market should pay more attention to whether NVIDIA discloses multi-year off-balance-sheet commitments made to secure chip supply, power, AI models, and customer demand. While quantifying these potential liabilities cannot entirely eliminate the risks associated with AI infrastructure development, it could help the market reassess NVIDIA's currently suppressed valuation. In September 2025, when NVIDIA announced a $100 billion investment plan for OpenAI, corresponding to 10GW of computing power, its forward EV/EBITDA was approximately 27x. Since then, this valuation multiple has dropped by 44% to about 15x, less than half of AMD's approximately 32x. Bank of America believes the current discount excessively factors in a worst-case financing scenario of around $500 billion, equivalent to 10% of enterprise value, which includes $150 billion to $200 billion in multi-year procurement commitments and cloud service contracts. If AI demand remains robust, NVIDIA may not need to bear the costs of idle capacity or stranded assets. Bank of America also suggested that NVIDIA should increase shareholder returns. Between fiscal years 2013 and 2025, Apple returned 82% of its free cash flow to shareholders and repurchased approximately 43% of its outstanding shares. In contrast, the market expects NVIDIA's free cash flow return rate for fiscal years 2027 to 2028 to be only about 37%. If this rate were increased to 50% to 75%, it could provide stronger support for the stock price. The bank estimates that NVIDIA could generate approximately $1 billion in free cash flow per day next year, sufficient to support both ecosystem commitments and stock buybacks simultaneously.