JPMorgan Chase & Co (NYSE: JPM) is on track to become the first bank ever to reach a $1 trillion market capitalization. According to a top analyst at its biggest rival, this impending milestone is making the financial giant's current share price look like a discount that investors can't afford to miss.

"Investors are undervaluing the potential for JPMorgan's valuation premium relative to its peers to expand as the stock nears entry into the exclusive $1 trillion market cap club," wrote Ebrahim Poonawala, an analyst at BofA Securities, in a note Wednesday. He added that the bank, led by Jamie Dimon, could attract a new wave of investors, creating a "scarcity premium."

Poonawala highlighted that the 11 S&P 500 companies currently boasting a market cap above $1 trillion—including Nvidia, Alphabet, and Apple—all trade at price-to-earnings ratios far exceeding JPMorgan's. JPMorgan stands to gain from this dynamic, "as it would be the only company outside the tech sector with a market cap exceeding $1 trillion and a single-digit P/E ratio." He characterized the bank as "one of the most attractive risk/reward opportunities in our coverage," questioning whether investors will continue to value the firm at a "significant discount to the broader market."

Wall Street is divided on how much further JPMorgan's stock can climb. Data shows that while no analyst has a "sell" rating, 18 recommend "buy" and 15 suggest "hold." Meanwhile, the average price target of $375 implies the stock won't cross the $1 trillion threshold in the next 12 months. For context, Bank of America, the second-largest US bank by market value, sits at under $450 billion.

Poonawala believes JPMorgan is poised for "superior earnings growth" thanks to its scale advantages and leverage in areas like artificial intelligence, digital assets, and wealth management. He also cited Dimon as "one of the best CEOs in corporate America," a further tailwind for the bank. JPMorgan shares rose 0.34% on Wednesday, bringing their year-to-date gain to 10% in 2026, following three consecutive years of over 25% annual increases.

Many investors have been waiting for a larger rally in US bank stocks, and the conditions for further strength are now in place, including a relatively stable economy and booming AI-related lending activity. Previously, Andrew Graham, a partner at Jackson Square Capital, noted that JPMorgan is uniquely positioned to withstand economic shocks.