After dropping 14% since the H20 export ban to China, Nvidia (NASDAQ:NVDA) may be setting up for a rebound, according to Bank of America analysts. Despite near-term headwinds, BofA reiterates a Buy rating and highlights attractive valuations against long-term potential.

Four Overhangs, Now Largely Priced In

1. China Sales

   • Exposure: China accounted for ~13-14% of Nvidia's revenue.

   • H20 Impact: Baked in a 3-6% data-center sales cut; they view this risk as “de-risked.”

2. AI Diffusion Rule

   • Timing: Potential implementation as early as May 15.

   • Worst Case: Could shave ~10% of sales and up to 11% of EPS.

3. Gross Margins

   • Current Pressure: Cuts and cost inflation have compressed margins.

   • Recovery: BofA forecasts margins improving in the second half as Blackwell scales and Blackwell Ultra ramps.

4. Cloud CapEx Visibility

   • Uncertainty: Limited clarity on 2026 spend from cloud service providers.

   • Outlook: “Needs a few more quarters” for CSPs to provide guidance.

Valuation and Long-Term Upside

• Rich vs. Cheap: Trades at 19× CY26 P/E—well below its historical ~30× median.

• Adjusted EPS Estimates: Fiscal 2026/2027 forecasts now reflect full China/H20 cuts.

• Price Target: Lowered to $150 (from $160), yet BofA views current volatility as a buying window.

Monitoring Nvidia's Profitability Metrics

To track Nvidia's evolving profitability and valuation, investors can leverage the
🔗 Ratios TTM Statement Analysis API
from Financial Modeling Prep.
This API delivers up-to-date trailing-twelve-month ratios—such as net margin, return on equity, and P/E—essential for assessing how near-term pressures are resolving and comparing current multiples to historical benchmarks.