Bank of America analyst Vivek Arya reiterated a Buy rating and $350 price objective for Nvidia. The bank designated the stock a top pick.
The bullish outlook centers on the next-generation Rubin AI chip platform. BofA expects this platform to drive a significant multi-quarter upgrade cycle currently underestimated by investors.
Arya dismissed investor concerns regarding memory costs and margins. He argues these factors will have a limited impact on company profitability.
Nvidia currently trades at its most attractive forward valuation in a decade. The bank expects the company to surpass upcoming quarterly revenue guidance and issue a strong forecast for the following period.