Here’s What BofA Thinks About NVIDIA Corporation (NVDA)
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Daily snapshot
This topic is included in the Trace archive for Tuesday, May 5, 2026.
Bank of America has expressed optimism about NVIDIA Corporation's potential to enhance shareholder returns, suggesting that increasing dividends or initiating buybacks could lead to a higher stock rating. The firm anticipates that NVIDIA will generate over $400 billion in free cash flow from 2026 to 2027, yet notes the company trades at a market cap to free cash flow multiple that is significantly lower than its competitors.
Key Points
NVIDIA is expected to generate over $400 billion in free cash flow from 2026 to 2027.
The company's current dividend yield is only 0.02%, limiting its appeal to income-focused investors.
BofA suggests increasing the dividend yield to between 0.5% and 1% could attract more investors.
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