NVIDIA still market frontrunner despite selloff - analysts
Published: 11:20 10 Apr 2024 EDT
Bank of America analysts have batted off concerns over a recent dip in NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares and repeated backing for the chipmaker.
“Volatility is not new,” the bank wrote in a note.
The current selloff marks the ninth time NVIDIA stock has declined around 10% or more since ChatGPT was launched, analysts noted.
NVIDIA slipped 10% from around US$950 per share in late March to US$835 on Tuesday’s close.
Bank of America noted recent sticky inflation readings, fatigue around artificial intelligence stocks and preparations for the upcoming US earnings season could be among reasons to blame.
“We believe the fundamentals are solidly on track and periods of consolidation tend to set the stock up for strong moves later,” analysts wrote.
A ‘buy’ rating was reiterated as a result, alongside a US$1,100 share price target.
Analysts also noted concern about growing competition across the chipmaking sector, but said nothing had been seen “thus far” to change the view that NVIDIA will continue to hold a majority market share.
This includes news of Alphabet Inc (NASDAQ:GOOG)’s new ARM Holdings PLC-powered data server and Intel Corp (NASDAQ:INTC, ETR:INL)’s latest graphics processing unit chip.
NVIDIA climbed 1.4% to US$865.24 on Wednesday.
