Woofun AI reports that Bank of America maintains a bullish stance on NVIDIA, arguing that market anxieties regarding High Bandwidth Memory cost increases and ASIC competition are exaggerated. The bank highlights NVIDIA's robust pricing power, supply chain advantages, and ecosystem moat, noting that the upcoming Rubin AI platform will likely offset HBM cost growth through higher selling prices. With approximately $119 billion in supply chain commitments, NVIDIA is expected to preserve its cost advantage, keeping gross margins near the 75% midpoint.

Regarding custom chip risks, Bank of America points out that despite over a decade of Google TPU development, NVIDIA's GPU revenue has grown roughly 700 times, indicating that ASICs have not eroded GPU dominance in AI training and inference. The bank projects NVIDIA will retain 65% to 70% of global hyperscale cloud providers' AI infrastructure spending. Currently trading at a forward P/E of 18.7 times, half its decade average and near an 11-year low, Bank of America expects the August earnings report and Rubin platform progress to validate profitability and drive valuation reassignment.