The US stock market has bounced back in a big way this week. With macroeconomic data showing a…

The US stock market has bounced back in a big way this week. With macroeconomic data showing a fragile but stable market and geopolitical tensions easing, there has been optimism abounding for Wall Street. That has been especially true for Nvidia (NVDA), which is set to get a $5 billion boost that Bank of America says could be huge for the stock.

Like many of its Magnificent 7 counterparts, Nvidia has struggled this year. The AI chipmaker has had to navigate increased import duties and competition to try and find its footing once again in 2025. That may be set to take place in May, with Q2 getting off to a strong start for the tech giant.

Also Read: Nvidia (NVDA): Can It Reclaim Its Spot as World’s Most Valuable in 2025?

Nvidia Will Get a $5 Boost That Could be Massive, Bank of America Says

Approaching the midpoint of the month, the US stock market is in a rather strong position. Despite a volatile start to the year, the S&P 500 has risen for the fourth consecutive day. Moreover, it continues to gain as it has already erased all of its 2025 losses earlier in the week.

That development has many traders optimistic that some of the biggest disappointments of the year will cease to be. Among them is Nvidia (NVDA), which is set to get a major $5 billion revenue boost that Bank of America recently discussed. Specifically, they used the information to update their outlook on the stock.

Also Read: Nvidia (NVDA): Expert Calls Stock a Long-Term Play Despite 2025 Struggles

The firm recently raised its price target for the stock to $160, noting growing sovereign AI demand for infrastructure products. Indeed, it noted the recent partnership with a Saudi Arabian subsidiary could generate between $3 billion and $5 billion annually. Over multiple years, the deal is expected to produce a value of $20 billion.

That reassures the stock’s stability among those who had concerns over AI spending. Bank of America analysts note that Nvidia is expecting $7 billion in direct contract value, according to a report. Moreover, Phase 1 of its Saudi Arabian partnership will sell 18,000 Blackwell GPUs for around $700 million.