Nvidia: BofA mentions a 'refreshing' pause

(CercleFinance.com) - Bank of America on Wednesday maintained its buy recommendation on Nvidia shares, with a price target of $1,100 (cp: $870, +2%), advising investors not to break out in a cold sweat after the stock's correction.


The broker notes that the chipmaker's share price has fallen 11% since its all-time high at the end of March, underperforming both the S&P 500 and the SOX semiconductor index.

However, it points out that movements of this magnitude are nothing new for the stock, since this is its ninth correction of at least 10% since the announcement of the launch of ChatGPT at the end of 2022.

For BofA, this drop - which it attributes to the recent launches of competing AI processors by Intel and Google - is rather a refreshing pause, given that Nvidia is set to continue dominating amongst peers, with a market share of over 75% by 2027.


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