NVIDIA Corp (NASDAQ:NVDA) could be in for a significant pullback following its upcoming earnings report, according to a Bank of America analyst.
What Happened: Bank of America’s Vivek Arya, a research analyst, has highlighted the possibility of a substantial decline in Nvidia’s stock value, reported Business Insider. Arya’s analysis suggests that the chipmaker’s stock could face an 11% implied post-earnings move, based on bullish buy-side estimates for Nvidia’s Q4 earnings, which are 9% above consensus.
Arya, however, believes that any potential decline would be temporary, driven by supply-side issues rather than shifts in demand and competition. He also expects the stock’s volatility to settle after Nvidia’s GPU Tech Conference in mid-March.
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Despite the potential pullback, Arya maintains that Nvidia remains an attractive stock, with a valuation of 35 times its price-to-earnings ratio, below its median. The company’s stock has seen a significant surge, propelling it to become the third most-valued firm on the S&P 500, surpassing Amazon and Alphabet.
Notably, …
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