Nvidia (NVDA) stock has clearly been on every investor’s radar over the past three years.

However, the market’s now moved beyond the usual demand discussions and is now fixated on its tremendous runway.

That changes the dynamic in a big way and will shape the stock’s long-term trajectory, especially since it leaves little room for disappointment.

For context, if you’d invested $10,000 in Nvidia stock and left it for three years, you’d be sitting at a jaw-dropping $52,300.

Nevertheless, a ton of future growth is already priced into the stock, and investors buying Nvidia today are paying roughly 35 times forward non-GAAP earnings, according to Seeking Alpha.

Bank of America analysts just had a fresh read on that opportunity after hosting Nvidia CFO Colette Kress at its Global Technology Conference.

Moreover, Nvidia investor-relations executive Stewart Stecker gave analysts a look at how the tech giant is thinking about demand, supply, and the next product cycle.

For perspective, in one of his recent posts, TheStreet’s resident tech expert and reporter Vuk Zdinjak broke down the AI giant’s biggest announcements from the GTC Taipei event.

During the event, Nvidia confirmed that its new Vera Rubin AI platform has entered full production, backed by hundreds of partners helping ramp up manufacturing across the globe.

Additionally, the RTX Spark was introduced, a new superchip built for Windows PCs, that can efficiently run AI agents and the latest AI models locally.

BofA analysts now view Nvidia as more than just a leader in GPUs.

They paint a picture of a uniquely diversified company, powered by a full-stack approach that continues to widen its competitive edge as AI use cases evolve

Moreover, after sitting down with management, BofA analysts believe the growth runway is expanding.

That compelled the firm to effectively reset its expectations on the stock.

Wall Street price targets for Nvidia stock

• Morgan Stanley set a $288 price target on Nvidia stock. .

• Bank of America set a $350 price target on Nvidia stock. .

• UBS set a $280 price target on Nvidia stock. .

• JPMorgan set a $280 price target on Nvidia stock. .

• Goldman Sachs set a $285 price target on Nvidia stock. .

• Cantor Fitzgerald set a $350 price target on Nvidia stock.
  Source: MarketBeat.

Bank of America sees Nvidia’s AI runway getting even wider

As mentioned earlier, BofA analysts feel Nvidia is far from being just a GPU story.

More Nvidia:

In fact, they argue that the tech giant has spread its tentacles into CPUs, AI systems, software, networking, and several other areas.

Consequently, Nvidia’s content per gigawatt is likely to rise sharply with every product generation, from $40 billion per GW for Blackwell to $60 billion to $80 billion per GW for Vera Rubin and Rubin Ultra, and potentially $100 billion per GW with Feynman.

The reset rests on three big takeaways:

• CPU opportunity is expanding: Nvidia expects $20billion in Vera CPU sales in the back-half of fiscal 2027, split evenly between head-node sockets and standalone agentic AI sockets.

• AI system value is rising: Vera Rubin includes 7 chips across 5 racks, compared to Blackwell’s main compute rack.

• Demand visibility looks strong: Nvidia’s $124 billion purchase commitment underscores robust demand and supply visibility ahead.

Additionally, BofA analysts describe Nvidia as being the “king of diversity,” noting its sales mix is split evenly between hyperscalers and ACIE (AI Clouds, Industrial, and Enterprise).

The ACIE segment is forecasted to grow even faster over time, backing up the view that Nvidia’s moat is broadening.

Moreover, BofA analysts reiterated their Buy rating on the stock, with a $350 price target, based on 26 times calendar 2027 estimated earnings, excluding cash.

That multiple sits well within Nvidia’s historical 25x to 56x forward-year price-earnings range.

At around $205, the target points to a whopping 71% upside, a bold call to say the least for a business valued near $4.97 trillion.

If Nvidia rises to $350 per share, its market cap could approach $8.5 trillion, assuming its share count remains largely unchanged, an insane level no other company has ever achieved.

Bank of America analysts flag Nvidia downside risks

• BofA analysts flagged Nvidia’s legacy consumer-driven gaming segment as a laggard.

• They pointed to growing competition from the top public companies, internal cloud projects, along with private AI firms involved in accelerated computing.

• China is another thorn in its side, with export-related restrictions potentially weighing more heavily than expected.

• Analysts pointed to concerns over Nvidia’s newer enterprise, data center, and auto markets producing lumpier, unpredictable revenue.

Nvidia stock returns vs. the S&P 500

• Over the past month, Nvidia stock returned 4.38%, compared with 1.71% for the S&P 500.

• Over the past six months, Nvidia stock returned 12.44%, compared with 7.47% for the S&P 500.

• Year to date, Nvidia stock returned 9.97%, compared with 7.86% for the S&P 500.

• Over the past year, Nvidia stock returned 46.51%, compared with 24.32% for the S&P 500.

• Over the past three years, Nvidia stock returned 423.60%, compared with 72.77% for the S&P 500.

• Over the past five years, Nvidia stock returned 1,066.78%, compared with 74.56% for the S&P 500.
  Source: Seeking Alpha.

Related: Morgan Stanley resets Nvidia stock forecast after key event

This story was originally published by TheStreet on Jun 6, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

Elon Musk is the world’s richest man, on track to become the first-ever trillionaire (or may already be one), but he’s done one thing most average Americans have to do: take out a mortgage. 

The Tesla CEO has taken out several mega mortgages, including $61 million from Morgan Stanley, on five properties in California, according to the Los Angeles Times. That’s barely a drop in the bucket of his now-$703 billion net worth, so it could be difficult to understand why he’d borrow tens of millions of dollars to buy real estate. 

But financial experts say taking out a mortgage—even when you could easily pay cash—can actually be a smart wealth strategy.

Why wealthy buyers still take out mortgages

One of the main reasons is that most of the wealth held by UHNW people is tied up in investments, stocks, and bonds, and they don’t keep as much liquid cash on hand. 

“Ultrahigh-net-worth individuals think differently about liquidity and leverage,” Miltiadis Kastanis, executive director of sales at Compass, told Fortune. “They’d rather keep their money working for them in investments, businesses—or even art—rather than tying it all up in one property.”

Meta CEO Mark Zuckerberg, the world’s seventh-richest man, has also used mortgages to his advantage. In 2012, Zuckerberg refinanced his Palo Alto home with a 30-year, 1.05% adjustable-rate mortgage, according to CNBC. With such a low rate, the mortgage cost him practically nothing, so it didn’t make sense to have nearly $6 million tied up in a home. Plus, borrowing during the era of ultralow interest rates in the 2010s was especially attractive. Many wealthy buyers locked in mortgages at a much lower rate than today’s.

“If they believe their investments will yield a greater return than the interest they’re paying on a mortgage, it makes more sense to finance the property,” Kastanis added. “It’s less about the cost of the loan itself and more about optimizing where their money is placed.”

Mortgage interest can also be tax deductible on loans up to $750,000 for those who itemize when filing their taxes. While Zuckerberg’s mortgage was more than that, he can likely deduct at least part of his mortgage interest, which further reduces borrowing costs. 

“Mortgages also allow for tax optimization in some jurisdictions, as interest payments may be deductible,” Islay Robinson, founder and CEO of mortgage brokerage Enness Global, told Fortune. “And in high-inflation environments, the value of money erodes over time, making it advantageous to borrow now and repay later.”

Celebrities use the same strategy

Many celebrities and wealthy buyers take the same approach.

Take Paris Hilton, who took out a mortgage on the $63 million mansion she bought from Mark Wahlberg in Beverly Hills. Hilton is estimated to be worth between $300 million and $400 million. 

What’s even more interesting is that she and her husband, Carter Reum, reportedly took out the loan after they had already bought the 12-bed, 20-bath home, which shows a $43.75 million mortgage with JPMorgan Chase at an interest rate of 5.25%.

“It surprises many people, but it’s actually quite common for the mega-wealthy to take out mortgages—even when they could write a check for the full purchase price,” Evan Harlow, real estate agent at Maui Elite Property, previously told Fortune. 

Tax and inflation advantages of taking out a mortgage

Another reason ultrawealthy buyers borrow rather than pay cash is that they often take out loans backed by their investment portfolios. Known as securities-based lending, these loans allow clients to borrow against stocks or other assets without selling them and triggering capital gains taxes. Large banks often promote these types of loans to wealthy clients.

“Rather than selling your public market investments to raise money, borrowing against your assets can allow you to stay the course on your investments, defer taxes, and free up money for other opportunities,” according to J.P. Morgan. “It’s a way to tap into the value of what you own while keeping your financial plans intact.”

Because borrowed money is not treated as taxable income under U.S. law, wealthy individuals can finance spending by taking loans against their assets without triggering income taxes. Analysts often describe the practice as “buy, borrow, die”: accumulate appreciating investments, borrow against them to fund consumption, and ultimately pass those assets to heirs with a stepped-up basis that largely eliminates the accumulated capital gains tax.

What everyday buyers can learn

For billionaires and everyday buyers alike, the decision ultimately comes down to how they want their money working. Is it better to lock it into a house—or invest elsewhere?

“The takeaway for the average buyer isn’t to mimic their precise approach, but to understand the principle,” Harlow said. “Sometimes the smartest financial move isn’t paying everything off, but keeping your money flexible and working for you.”

A version of this story was originally published on Fortune.com on March 9, 2026.

More on luxury housing:

ABOARD AIR FORCE ONE (AP) — President Donald Trump said Friday that he wants his new acting director of national intelligence, Bill Pulte, to cut the office, which has already been significantly scaled back during his second term.

WATCH: Trump says Pulte isn’t ‘permanent’ pick for national intelligence chief after GOP pushback

Trump noted that the size of the office has been “way too high for way too long” and that “if he cut, I wouldn’t mind that.”

“He’ll do a very good job,” Trump told reporters on Air Force One as he traveled to Wisconsin for an event on agriculture. “He’ll watch it closely, but Bill Pulte is very good, he’s very talented.”

The Republican president said in an earlier interview with The Wall Street Journal that he has asked Pulte to start the process of firing employees. In the interview, Trump said he has already conveyed his view to Pulte, who has served as head of the Federal Housing Finance Agency but has no apparent national security expertise.

“I’d like to see it smaller. I think there are a lot of people in there that shouldn’t be there,” Trump said, which the Journal said was in reference to intelligence community officials who had served in the Democratic administrations of Presidents Joe Biden and Barack Obama.

Trump told the Journal that he wants Pulte to “start the process” of firing personnel and that the eventual permanent director of national intelligence should continue it. The president has indicated that he would not formally nominate Pulte for the position.

“Frankly, it might be good for him to shake it up before people come,” Trump said. “Because, if he (Pulte) reduced the size, in conjunction with me … and in conjunction with possibly the person coming in … he can do a lot of the hard work and we wouldn’t have to saddle somebody that goes in.”

Pulte was tapped by the president earlier this week in a surprising move that has been met with bipartisan resistance in the Senate, which confirms presidential nominations. The temporary appointment has now snarled the renewal of a critical national security surveillance program on Capitol Hill, with Democrats key to the vote pointing out that they did not trust Pulte — whose office oversees 18 intelligence agencies — to help administer the surveillance program.

Trump told reporters on Air Force One that Pulte will stay in the position depending on how long it takes to get his successor confirmed. The president also said he was considering five people who were “all very good, all people that you know very well, all people that do that kind of thing.”

“They’re very respected people,” Trump said of his intelligence candidates, without naming them.

Under Pulte’s predecessor, Tulsi Gabbard, the DNI office had already taken steps to scale back its size. In August, the Trump administration said that the office’s budget would be cut by more than $700 million per year, while slashing the size of its workforce.

At the time, Gabbard said the office had become “bloated and inefficient” while she announced the roughly 40% workforce reduction.

Gabbard resigned last month after revealing her husband’s cancer diagnosis.

Kim reported from Washington.