Nvidia Remains Top Pick for 2025 Despite Market Volatility
Amidst a significant stock sell-off, Bank of America's Vivek Arya maintains his bullish stance on Nvidia (NVDA), reiterating it as his top pick for 2025.
Arya's unwavering optimism stems from Nvidia's anticipated earnings report on February 26, which he believes will be a catalyst for the stock's performance. His price target of $190 represents a potential upside of 57% from current trading levels.
Despite concerns over Chinese competitor DeepSeek and increased competition from tech giants, Arya remains confident in Nvidia's dominance in the AI market. He highlights the company's strong roadmap and the underappreciated competitive advantages in software and against custom chip players.
Nvidia's stock currently trades at a forward price-to-earnings ratio of 26 times, which Arya believes is attractive compared to its historical trading range. He emphasizes the company's solid cloud capital expenditures and the underappreciated competitive moats that support his bullish outlook.
Arya's analysis and target price make Nvidia a compelling investment opportunity for long-term investors seeking exposure to the high-growth AI sector.