Nvidia Corp (NVDA) continues to dominate the AI computing landscape with a technological lead so substantial that Wall Street analysts are calling it generational. Following a recent investor meeting, BofA Securities has doubled down on its bullish stance, highlighting demand visibility that stretches well into 2026.

Vivek Arya from BofA Securities maintained his Buy rating on Nvidia with a $275 price target. After hosting a virtual investor meeting with Nvidia's investor relations lead Toshiya Hari, Arya reaffirmed the chipmaker as his top pick in the semiconductor space.

A Full Generation Ahead in AI Computing

Here's where things get interesting. Arya argues that Nvidia isn't just slightly ahead of competitors—it's commanding a full-generation lead. Today's GPU-trained Large Language Models still run on Nvidia's older Hopper architecture, which tells you something about how far ahead the company has been planning.

The real kicker comes in early 2026 when Blackwell-trained LLMs are expected to arrive. According to Arya, these systems should deliver a 10x to 15x performance jump over current technology. That's not incremental improvement—that's a leap that resets the competitive landscape entirely.

External benchmarks are already backing this up. MLPerf and InferenceMAX tests show Blackwell leading across training efficiency, inference performance, tokens per watt, and revenue per token. In other words, it's faster, more efficient, and more profitable to operate.

Nvidia isn't stopping there. The next-generation Vera Rubin platform remains on track for the second half of 2026, with the pre-fill inference CPX version scheduled for Q4 2026. The roadmap is locked, and the company is executing on schedule.

Arya emphasized that Alphabet Inc.'s (GOOGL) Google continues to expand as a major Nvidia customer, and every significant model builder in the AI space still depends on Nvidia's platform. That's the kind of customer lock-in that creates durable competitive advantages.

Half a Trillion Dollars in Demand Visibility

The analyst outlined strong demand and supply visibility supporting at least $500 billion in cumulative sales across calendar years 2025 and 2026 for Blackwell, Rubin, and networking products. That's not speculation—that's pipeline visibility backed by customer commitments.

Recent partnerships with OpenAI and Anthropic represent additional upside beyond that $500 billion baseline. Arya noted these deals involve letters of intent and could add further momentum to already robust projections.

Nvidia's footprint in data-center infrastructure reinforces this confidence. Arya pointed out that Blackwell systems run about $30 billion per gigawatt, with even higher price tags for Rubin systems. That capital intensity creates significant barriers to switching and ensures long-term customer relationships.

Here's a detail that matters: Nvidia's five-year-old Ampere GPUs remain nearly fully utilized at customer sites, validating a useful life of five to six years. That means customers aren't just buying Nvidia chips—they're extracting sustained value from them, which justifies continued investment in newer generations.

Arya described Nvidia's competitive position as unmatched because the company co-designs systems with customers and delivers a complete platform spanning CPUs, GPUs, scale-up, scale-out, scale-across, and CUDA software. Those are capabilities no rival can replicate, according to the analyst.

China Questions and Margin Resilience

Not everything is crystal clear. Arya acknowledged it's too early to quantify the impact of potential H200 GPU sales in China under the Trump administration's evolving trade policies. Nvidia still needs to secure a formal license and evaluate demand, supply capabilities, and Chinese regulatory constraints.

The analyst also noted uncertainty around the proposed 25% cut to U.S. government allocations. Any cost impact remains unclear, though Arya sees higher cost of goods sold as more likely than lower revenue if the cuts materialize.

Despite rising memory costs pressuring the industry, Arya said Nvidia's mid-70% gross margin outlook remains intact. He argued the stock's valuation looks compelling compared to other mega-cap technology companies, suggesting the market may be underestimating Nvidia's sustained competitive advantages.

NVDA Price Action: Nvidia shares were down 2.64% at $178.92 at the time of publication on Thursday.