JPMorgan (JPM.US) approaches $1 trillion market capitalization, as competitor Bank of America declares: still very cheap!

According to the Zhihui Finance APP, JPMorgan (JPM.US) is set to become the first bank with a market capitalization surpassing 1 trillion US dollars. An analyst from its largest competitor, Bank of America, noted that this milestone makes the financial giant’s current share price exceptionally attractive and not to be missed, as it remains undervalued.

“Investors are underestimating the potential for JPMorgan’s valuation premium over its peers to widen as the stock is about to join the 1 trillion-dollar market cap elite club,” wrote Bank of America Securities analyst Ebrahim Poonawala in a report on Wednesday. He added that the bank, led by Jamie Dimon, could attract new investors, generating a “scarcity premium.”

Poonawala pointed out that of the eleven S&P 500 constituent companies with market capitalizations above 1 trillion dollars—including Nvidia, Alphabet (Google’s parent company), and Apple—all have significantly higher price-to-earnings ratios than JPMorgan. JPMorgan stands to benefit from this, “as it would be the only non-tech company with a market capitalization exceeding 1 trillion dollars and a P/E ratio in the low teens.”

He described the bank as “one of the most attractive risk/reward opportunities in our coverage.” He also mentioned that the question is whether investors will continue to value this company at “a valuation far below the broader market.”

Wall Street remains divided on JPMorgan’s potential for further share price appreciation. Data shows that while no analysts have issued a “sell” rating, 18 have recommended “buy” and another 15 rate it as “hold.” Meanwhile, the average price target of 375 dollars suggests that the stock is unlikely to breach the 1 trillion-dollar mark in the next 12 months. Bank of America, with a market capitalization under 450 billion dollars, is currently the second-largest US bank by market capitalization.

Poonawala believes JPMorgan can achieve “outstanding earnings growth” thanks to its scale advantages and leverage in artificial intelligence, digital assets, and wealth management. He also remarked that Jamie Dimon is “one of the best CEOs in US corporate circles,” which is also a positive for JPMorgan.

JPMorgan shares rose 0.34% on Wednesday. The stock has gained 10% year-to-date in 2026, with annual gains exceeding 25% in each of the previous three years.

Many investors have been waiting for bank stocks in the US to see larger gains, and the conditions for further strength are in place, including a relatively robust economic situation and booming AI-related loan business. Previously, Jackson Square Capital partner Andrew Graham stated that JPMorgan is particularly well-positioned to withstand economic shocks.