Investing.com — Nvidia remains dominant in the semiconductor industry, and analysts at Bank of America reaffirmed their buy rating on the stock in a note on Monday, citing several reasons why investors should consider holding shares of Nvidia (NASDAQ:
First, the bank noted recent meetings with Nvidia executives at the CES conference and gave assurances about the successful launch of their Blackwell chips.
Despite market concerns about the execution and growing competition from custom ASIC chips developed by companies such as Broadcom (NASDAQ: ) and Marvell (NASDAQ: ), Nvidia’s strategy is said to remain strong.
Second, Nvidia’s expansion into new markets is a major driver of growth, according to BofA.
The bank’s analysts explained that the company is making strides in robotics, autonomous vehicles, and PCs and AI-enabled workstations, particularly through its Project DIGITS program.
Third, BofA believes Nvidia’s valuation looks attractive, as shares trade at about 31 times estimated earnings for the 2025 calendar year, which falls below their standard valuation range of the mid-20s to mid-30s.
This is said to position Nvidia as a compelling investment, especially given its leadership in the field of AI.
Finally, upcoming events are expected to strengthen Nvidia’s dominance in the AI industry. The company’s fourth-quarter earnings report, scheduled for February 26, and the flagship GTC conference on March 17, are expected to highlight Nvidia’s continued innovation and the continued importance of AI investments.
Bank of America also points to Nvidia’s resilience despite challenges such as potential export restrictions on AI technology. Analysts believe that Nvidia’s long-term prospects remain strong, driven by its technological leadership and expanding market opportunities.
