(CercleFinance.com) – Bank of America maintained its buy recommendation on Nvidia stock on Wednesday, with a price target of $1,100, advising investors not to break out too much after the stock’s correction .
In a note, the broker points out that the stock price of the chip manufacturer has fallen by 11% since its all-time high at the end of March, thus underperforming the S&P 500 as well as the SOX semiconductor index.
However, he recalls that movements of such magnitude are not 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 decline – which it attributes to the recent launches of competing AI processors at Intel and Google – is rather a refreshing break, knowing that Nvidia is expected to continue to dominate the accelerator market with market share by more than 75% by 2027.
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