Nvidia: Strategic Positioning and Recovery Potential Amidst Challenges

Bank of America Securities analyst Vivek Arya has maintained their bullish stance on NVDA stock, giving a Buy rating yesterday.

Vivek Arya has given his Buy rating due to a combination of factors including Nvidia’s strategic positioning in the global AI deployment cycle and the potential for recovery in China sales with new compliant products later in the year. Despite the challenges posed by the US government’s ban on H20 sales to China, which could result in a significant sales headwind, Arya sees Nvidia as a top sector pick.
Furthermore, Arya anticipates a modest sales beat in Q1, although gross margins may be impacted by inventory write-offs related to the ban. He also highlights the possibility of Nvidia achieving a gross margin recovery to target levels in the second half of the year, which would indicate strong demand and effective execution of their product strategy. These factors, combined with Nvidia’s historical valuation metrics, suggest potential for stock appreciation, making it a compelling investment opportunity.

In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $175.00 price target.

NVDA’s price has also changed slightly for the past six months – from $141.950 to $132.830, which is a -6.42% drop .