BofA analyst Vivek Arya maintained a Buy rating on Nvidia Corp (NASDAQ:NVDA) with a price target of 1,100.
Nvidia is down about -11%, underperforming the SOX and SPX since an all-time high of $950 on March 25 following its GTC tradeshow, Arya said. The current selloff marks the 9-time Nvidia stock has declined ~10% or more since ChatGPT’s launch in late 2022.
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On a fundamental basis, the analyst flagged investor concern around rising competition and reducing lead times for Nvidia GPU accelerators.
While there is always the potential for near-term summer consolidation in Nvidia stock, Arya noted that the fundamentals are solidly on track, and periods of consolidation tend to set the stock up for strong moves later.
Earlier today, Alphabet Inc (NASDAQ:GOOG) (NASDAQ: