Bank of America on Wednesday maintained its buy recommendation on Nvidia shares, with a price target of $1,100, advising investors not to break out in a cold sweat after the stock's correction.
In a note, the broker points out that the chipmaker's share price has fallen 11% since its all-time high at the end of March, underperforming both the S&P 500 and the SOX semiconductor index.
However, he points out that movements of this magnitude are nothing 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 drop - which it attributes to the recent launches of competing AI processors by Intel and Google - is rather a refreshing pause, given that Nvidia is set to continue dominating the gas pedal market, with a market share of over 75% by 2027.
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NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (55.9%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (44.1%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (55.6%), gaming (33.6%), professional visualization (5.7%), automotive (3.4%) and other (1.7%).
Net sales are distributed geographically as follows: the United States (30.7%), Taiwan (25.9%), China (21.5%) and other (21.9%).
NVIDIA CORPORATION 
