Shares of Nvidia have pulled back 14% in the past quarter, opening up an attractive entry point for investors, Bank of America said.
A recent pullback in shares of Nvidia has opened up an attractive opportunity for investors, according to Bank of America. The bank reiterated Nvidia as a top sector pick and stood by its buy rating. Shares of Nvidia have soared 114% this year, but pulled back approximately 14% in the past quarter as investors rotated out of the high-flying tech sector into smaller, more defensive stocks. In recent days, antitrust concerns have accelerated the downward move.
mountain chart "While market forces could enhance near-term stock volatility, we continue to find NVDA valuation compelling at 27x CY25/FY26E consensus PE . Over the past five years, NVDA has traded in a mid-20s to mid 60s PE, with current multiple in the lowest quartile, more than reflecting concerns," he wrote. A key catalyst for the stock could come in the form of supply chain data points, which would confirm the readiness of Nvidia's new Blackwell chip shipments, Arya wrote.
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