What happened
Nvidia stock (NVDA 6.22%) continued to rise today after reporting quarterly earnings. The Nasdaq Composite was up 1.2% as of 11:30 a.m. ET, with tech stocks rising overall, but Nvidia jumping 5.6%. Another market analyst commented on the high-performance computing company and they liked what they saw.
So what
Bank of America analyst Vivek Arya named Nvidia as its top large-cap semiconductor stock yesterday. Arya also reiterated his bullish stance on some other top chip companies, which analysts call MANGO stocks — Marvell Technology Group (MRVL 3.44%), AMD (AMD 6.10%), Analog Devices (ADI 1.57%), Broadcom’s Acronyms (AVGO -0.60%), Nvidia, GlobalFoundries (GFS 3.39%) and ON Semiconductor (ON 5.87%).
In addition to Nvidia, Arya made a special mention yesterday of the cloud computing and data center commitments from Marvell and AMD, as well as the ON of its automotive chip portfolio.
Last week, after Nvidia released its first-quarter report, ARK Invest began searching for the stock, and Evercore analyst C.J. Muse also maintained his buy rating on Nvidia. The stock is up about 20% since its quarterly update late on May 25 — although it’s still down 46% from its all-time high set in late 2021.
What should we do now
It’s encouraging to see recent gains here, but long-term Nvidia shareholders should continue to focus on the bigger picture. Uncertainty prevails in the video game space as the company has suspended sales to Russia, China’s recent pandemic lockdown is affecting chip supplies, and gamers await an update to Nvidia’s PC hardware lineup later this year. However, this appears to be largely offset by the data center segment, which is likely to be Nvidia’s largest end market going forward.
CEO Jen-Hsun Huang said the opportunities over the next decade are difficult to quantify as artificial intelligence unlocks new uses for data centers. But to patient investors, this looks like a top semiconductor stock to buy and hold for the long term.
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