Nvidia Maintains Top Pick Status Amidst Market Turmoil
Vivek Arya of BofA Securities continues to position Nvidia (NVDA) as a top investment for 2025, despite recent market volatility. With an expected earnings report on February 26th, Arya anticipates a potential catalyst for the stock. His price target of $190 represents a significant upside from current trading levels.
Arya's Bullish Case
Arya highlights three key factors driving his optimistic outlook:
* Reassurance on Blackwell execution
* Confidence in 60%+ YoY growth in data center sales
* Excitement ahead of GTC Conference, focusing on upcoming product pipelines
Concerns and Competition
However, Nvidia has faced challenges this year, including concerns over AI infrastructure overspending and competition from companies like DeepSeek, Amazon, Google, Broadcom, and Marvell.
Attractive Valuations
Despite the recent decline, Arya suggests that Nvidia's valuation has become more appealing. Trading at 26 times forward P/E, the stock is approaching historical trough levels.
Key Highlights
* Nvidia has declined 15% year-to-date.
* Arya believes the stock is undervalued compared to its historical trading range.
* Competitive advantages in software and against ASIC players remain underappreciated.