Bank of America: Nvidia's Recent Stock Slide Could Offer 'Enhanced Buy Opportunity'
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Key TakeawaysNvidia's stock price gained Thursday as Bank of America analysts said near-term headwinds could offer an "attractive opportunity" for investors to buy.Nvidia shares tumbled earlier in the week amid concerns about the chipmaker's outlook and following reports that U.S. regulators sent the company subpoenas, though Nvidia denied the reports.Bank of America analysts called Nvidia their "top sector pick" despite near-term headwinds, citing the company's longer-term potential for AI-driven growth.
Nvidia's (NVDA) stock price gained Thursday, rebounding from losses earlier in the week as Bank of America analysts said near-term headwinds could offer an "attractive opportunity" for investors to buy.Nvidia shares had tumbled to start the holiday-shortened trading week, wiping billions from the company's market capitalization amid worries about its outlook and reports U.S. regulators sent the company subpoenas, though Nvidia denied the reports.Bank of America analysts reiterated their bullish stance on the stock, and called Nvidia their "top sector pick" despite the stock's recent decline. They said that while the stock faces several near-term headwinds, including a reported regulatory investigation, slowing quarterly growth, and potential Blackwell delays, as well as market seasonality, its longer-term potential for AI-driven growth remains intact.The stock's recent downturn could also "create an enhanced Buy opportunity," the analysts said, noting that the "key fundamental recovery catalyst will likely be supply chain data points over the next several weeks, confirming the readiness of new Blackwell product shipments."Nvidia shares finished close to 1% higher at $107.21 Thursday. The stock has more than doubled in value since the start of the year. Read the original article on Investopedia.
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