Despite the potential pullback, Nvidia remains a top pick for Bank of America due to its strong performance and central role in AI development. The company has seen a 250% increase in stock value through 2023, surpassing Amazon and Alphabet in mega-cap valuations. Arya also notes Nvidia's strategic alignment with US mandates limiting chip shipments to China, which accounts for about a fifth of the company's revenue.
Key takeaways:
- Nvidia's stock could pull back as much as 11% after earnings, according to Bank of America's Vivek Arya.
- This volatility will be short-lived and is mainly driven by over-bullishness, not fundamentals.
- The upcoming GPU Tech Conference in mid-March is expected to provide the stock with a boost.
- Despite potential short-term volatility, Nvidia remains a top pick for Bank of America research analyst Vivek Arya due to its rapid ascendance in mega-cap valuations.