BofA Maintains Buy Rating on NVIDIA (NVDA) Stock

NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Fundamentally Strong Stocks to Buy. On November 10, Vivek Arya maintained a “Buy” rating on the company’s stock with a price objective of $275. As per the analyst, the investors have been worrying quite a lot about the slowdown in AI spending.

This skepticism happens to be a good thing as it exhibits that the market is cautious and not overly excited, leaving room for steady gains. The recent weakness in AI chip stocks was due to the broader market issues, and there is nothing concerning about the AI story itself, added Arya.

Notably, the AI infrastructure spending remains robust, and NVIDIA Corporation (NASDAQ:NVDA) is positioned at the center of the buildout. According to the analyst, NVIDIA Corporation (NASDAQ:NVDA)’s main growth engines, AI data centers, networking, and accelerated computing, are on track.

While the analyst noted the short-term challenges, including uneven gaming sales or project delays in the new data centers, the company’s long-term outlook remains intact. Considering the dominant market position and a growing order book, the analyst believes that NVIDIA Corporation (NASDAQ:NVDA) is one of the most compelling ways to be part of the AI revolution.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.