Bank of America Lifts AI Data-Center TAM to $1.4 Trillion, Upgrades Nvidia Estimates
Bank of America raised its 2030 AI data-center systems TAM to $1.4 trillion and projects 100% year-over-year AI systems growth and 64% overall data-center expansion in 2026. The firm boosted Nvidia’s revenue estimates by 7% for fiscal 2027 and 2% for fiscal 2028 and 2029, while lifting EPS forecasts by 8%, 3% and 3% respectively.
1. Market Outlook Upgrade
Bank of America Securities analyst Vivek Arya increased the total addressable market for AI data-center systems to $1.4 trillion by 2030, up from $1.2 trillion, citing stronger-than-expected cloud capex plans. He noted that clearer supply expectations and secured allocations for high-bandwidth memory and CoWoS chips underpin the expanded market view.
2. Accelerated Growth Projections
Arya forecasts AI accelerator deployments to drive 100% year-over-year growth in AI systems and a 64% expansion in overall data-center system spending in 2026. He downplayed near-term supply risks, highlighting that 75% of expected HBM and 70% of CoWoS capacity increases were already booked, helping vendors maintain margins by passing on higher memory costs.
3. Nvidia Revenue and EPS Revisions
For Nvidia, Arya raised fiscal 2027 revenue estimates by 7%, and by 2% for both fiscal 2028 and 2029, while increasing EPS forecasts by 8% in 2027 and 3% in each of the following two years. He cited $0.5 trillion in sales visibility through 2026 and sustained hyperscaler demand as drivers of the upward revisions.