Nvidia: Bullish Sentiment Despite Market Sell-Off

Key Points:

* BofA analyst Vivek Arya maintains Nvidia (NVDA) as his top pick for 2025.
* Arya's price target of $190 represents a potential 57% upside from current levels.
* Nvidia faces competition from DeepSeek's affordable AI model and Big Tech players entering the AI chip market.
* Despite the challenges, Arya believes Nvidia's valuation has become more attractive.
* Nvidia's stock trades at a forward price-to-earnings ratio of 26 times, within the range of 25-29 times.

Detailed Analysis:

Despite a recent market sell-off, BofA's Vivek Arya remains bullish on Nvidia. He believes the upcoming earnings report on February 26th could be a catalyst for the stock. Arya's high price target of $190 reflects his confidence in Nvidia's long-term prospects.

However, Nvidia faces challenges from competitors such as DeepSeek and Big Tech companies. Arya acknowledges this, but also highlights Nvidia's strong competitive moat in software and versus custom chip players.

Overall, Arya believes Nvidia's stock is undervalued. He notes that its forward price-to-earnings ratio is at the lower end of its historical range.

Disclaimer: This content is for informational purposes only and does not constitute financial advice.