Nvidia Bull Maintains Top Pick Despite Sell-Off
Wall Street analyst Vivek Arya of BofA reiterates Nvidia (NVDA) as his top pick for 2025, despite the recent stock decline.
Analyst Rationale:
* Expects reassurance on Blackwell chip execution during Feb. 26 earnings call.
* Confidence in fiscal 2026/calendar year 2025 growth of over 60% in data center sales.
* Anticipation of excitement ahead of GTC Conference (March 17) showcasing pipeline and physical AI advancements.
Challenges:
* Entry of DeepSeek, a Chinese company with a cost-effective AI model.
* Competition from Big Tech giants such as Amazon, Google, Broadcom, and Marvell.
Valuation:
* Nvidia's stock trades at a forward price-to-earnings ratio of 26, within the lower range of Arya's estimates.
Conclusion:
Arya believes Nvidia's decline has made it more attractive for investors, with potential for substantial upside based on price target of $190. He emphasizes the company's strong software moats and competitive advantages over custom chip players.