Bank of America Affirms Why NVIDIA Corp. (NVDA) is a Top AI Stock on Wall Street Radar
NVIDIA Corp. (NASDAQ:NVDA) is a top AI stock on Wall Street’s radar. On July 6, Bank of America touted NVIDIA Corp (NASDAQ:NVDA) as one of the stocks poised for a rally after the recent reset. According to the research firm, the recent pullback aligns perfectly with historically weak seasonal patterns in the sector.
Consequently, it expects Nvidia to be one of the leading stocks in the near term, capitalizing on global cloud and AI infrastructure capital expenditure, which is expected to soar to $1.5 trillion, representing a 40% to 50% year-over-year increase. The research firm expects the robust growth to be driven by token expansion, agent adoption, and supply-constrained infrastructure. Bank of America expects hyperscalers to continue prioritizing utilization and growth over depreciation optimization.
On July 3, Nvidia confirmed it is offering cloud computing resources through a revenue-sharing credit support model. The new business model will see AI cloud providers sell Nvidia-powered cloud services, a move that will grant the company standard product revenue and a share of cloud earnings.
NVIDIA Corp. (NASDAQ:NVDA) is a dominant technology company that designs graphics processing units (GPUs) and AI software platforms. Originally famous for powering video games, its hardware has become the global foundation for artificial intelligence, data centers, and autonomous vehicles.
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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