@MR_Wu：TECHNOLOGY STREET NOTES Nvidia Is Named a Top Semi Stock at BofA. Here’s What It Likes About the Stock. By Angela PalumboFollow June 1, 2022 11:20 am ET Order Reprints Print Article BARRON'S NEWSLETTERS Hi HUNG, get the latest from The Barron's Daily A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron's and MarketWatch writers. SIGN UP Text size Shares of Nvidia have fallen nearly 37% this year. Justin Sullivan/Getty Images Chip maker Nvidia NVDA +0.79% could benefit from growth in a number of areas, according to one analyst at BofA Global Research, which said the stock was its top large-cap sector pick. Vivek Arya wrote in a research note that Nvidia (ticker: NVDA), as well as fellow semiconductor businesses Marvell Technology MRVL +2.59% (MRVL) and Advanced Micro Devices AMD +0.08% (AMD), can all greatly benefit from the continued growth in cloud computing, among other factors. Arya also chose On Semiconductor (ON) as his top small- to mid-cap pick, saying the company would benefit from its automotive technology. Arya wrote that in the past semiconductor companies had fewer drivers than they do now, such as computers and smartphones. Now “there are multiple end-markets served by a consolidated set of chip vendors, delivering proprietary products and generating solid FCF [free cash flow] margins.” “Our top picks serve end-markets where we expect spending/content growth drivers to be most resilient, such as in cloud computing/AI, high-end industrial, EV/advanced driver assist systems and in rising chip complexity,” Arya wrote. “Semis look compelling on a relative basis vs. industrial/Infotech stocks in the SPX [S&P 500] and catalysts such as easing of China lockdowns could help re-energize investor interest back in the sector,” Arya wrote. $NVIDIA Corp(NVDA)$ Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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