Nvidia (NVDA) shares were seen trading under $200 again on April 30 as Big Tech earnings made investors nervous about rising competition from the likes of Amazon (AMZN) and Alphabet's (GOOG) (GOOGL) Google.
On its earnings call, AMZN management explicitly said its custom chips are gaining traction, while Google also revealed plans to sell its TPUs to select third-party customers.
Despite today’s pullback, Nvidia stock remains a stellar investment for 2026 — currently up more than 20% versus its year-to-date low.
Why Amazon, Google Upside Isn’t Bearish for Nvidia Stock
Amazon and Google’s push into custom silicon, while bullish for their shareholders, isn’t necessarily bearish for NVDA shares.
For these hyperscalers, it’s a strategic play to bolster their own cloud margins; in-house chips allow them to offer more cost-effective options for specific, high-scale AI workloads, effectively cutting the barrier to entry for their cloud clients.
However, this doesn’t diminish Nvidia’s dominance. If anything, it reinforces the sheer size of the artificial intelligence addressable market.
Nvidia chips remain the gold standard for general-purpose AI training and complex frontier models that require the flexibility and massive ecosystem support (CUDA) that custom ASICs cannot yet replicate.
Simply put, the AMZN and GOOGL update only proves AI demand is diversifying and expanding, creating a rising tide scenario where specialized internal chips and Nvidia’s sophisticated GPUs coexist to meet an insatiable global appetite for compute.
BofA Continues to See Upside to $300 in NVDA Shares
Bank of America analysts led by Vivek Arya recommend buying Nvidia shares on every dip because at 27x forward earnings, they’re still reasonably priced relative to the company’s explosive growth rate.
In his latest research note, Arya cited management’s updated data center sales outlook, projecting $1 trillion or more by 2027, for his positive stance on NVDA.
Nvidia’s dominance in fast-growing AI compute and high-speed networking, which are becoming inseparable components of modern data centers, could drive its share price to $300 by year-end, Arya told clients.
Note that NVDA remains firmly above its major moving averages (MAs), with an RSI in the mid-50s indicating significant further room for upside.
Wall Street Remains Bullish on Nvidia
While not as bullish as BofA, other Wall Street firms favor owning NVDA stock in 2026 as well.
The consensus rating on Nvidia is currently “Strong Buy," with the mean price target of about $269 indicating potential upside of nearly 35% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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