Bank of America Securities analyst Vivek Arya has maintained their bullish stance on NVDA stock, giving a Buy rating on March 20.
Vivek Arya has given his Buy rating due to a combination of factors, including the compelling valuation of Nvidia’s stock despite potential geopolitical risks. Arya’s analysis suggests that even in various scenarios related to the US government’s ‘AI Diffusion Rules’, Nvidia’s stock remains attractive with an implied price-to-earnings ratio that is significantly lower than its historical average and its large-cap peers, adjusted for Nvidia’s superior growth.
Furthermore, Arya highlights Nvidia’s limited direct exposure to the Chinese data-center market and the potential for increased AI demand from US hyperscalers and other sectors as positive offsets to any sales headwinds. He also notes the expected recovery in gross margins as Nvidia transitions to more efficient rack-scale deployments, which could further enhance earnings potential. Overall, Arya views Nvidia as a high-quality tech franchise poised to lead in fast-growing secular trends, making it an attractive investment opportunity.
In another report released on March 20, J.P. Morgan also maintained a Buy rating on the stock with a $170.00 price target.
Based on the recent corporate insider activity of 127 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.