Bank of America bullish on Nvidia heading into 2025 | Wilnesh News
Bank of America said a range of stocks, including Nvidia, have significant upside potential in 2025. Hold these stocks. In addition to the chip giants, these companies include Block, Cadence Design Systems, Chevron and East West Bancorp. Wall Street’s Bullock is gushing about the payments fintech company, including Bank of America analyst Jason Kupferberg and team. “As a U.S.-centric re-acceleration story, we believe the stock can outperform,” he wrote recently. Rising cryptocurrency prices are also expected drivers, the company said. “Although 41% of SQ’s revenue comes from Bitcoin transactions, most of it is pass-through, and only 3% of SQ’s gross profit comes from Bitcoin,” Kupferberg added. The analyst also said the stock is well-positioned to benefit from improving macroeconomics and a looser regulatory environment with the new White House administration. “SQ should also benefit from a stronger U.S. SMB (small and medium-sized business) backdrop, plus management has provided initial top-level guidance for 25 years, reflecting a healthy mix of top-line growth and profitability this year,” he added. Block shares are up nearly 16% year to date. “SQ has been our preferred payment method for 25 years,” Kupferberg said. East West Bancorp top pick East West Bancorp analyst Ebrahim Poonawala said East West Bancorp is gearing up for the new year. “We believe the stock offers the most compelling risk/reward profile for investors seeking to accelerate loan growth,” he said of the regional bank. Additionally, the bank has “the highest level of capital” among industry peers, the analyst said. Poonawalla also praised East-West’s margins as “resilient” and that “the tailwind is right around the corner.” “In addition, strong capital levels and best-in-class profitability provide defenses should there be unexpected negative impacts on the economy,” he wrote. The company said the stock will rise 33% in 2024, with plenty of room to operate. . Cadence design systems analyst Vivek Arya said the electronic systems designer and manufacturer is going all out. He recently came out of a meeting with company management feeling more constructive about Cadence’s growth prospects. Arya specifically noted that Cadence’s stock has huge upside potential as it works to diversify its business. “CDNS has invested aggressively in the digital space, improving its entire product portfolio and is now present in all 20 of the top semiconductor companies (only 2 historically), performing well at different digital design stages,” the analyst wrote. Arya also raised its price target on the stock to a Wall Street high of $365 per share from $310. By 2024, the share price will increase by 10%. Rather than (bulky) hardware/capex exposed work-in-progress,” he said. Block “SQ is our preferred payment option for ’25. …SQ should also benefit from a stronger U.S. SMB backdrop, plus mgmt has provided preliminary top-level ’25 guidance, reflecting a healthy (and in our view underappreciated) mix Revenue Growth and Profitability…While 41% of SQ’s revenue comes from Bitcoin trading, much of it is pass-through, and only 3% of SQ’s gross profit comes from Bitcoin. Chevron “2025 is a critical year for CVX. There are many catalysts for 2025, both positive and negative for the stock. We’ve kept a running list in this note along with our view on the stock. Offers the most compelling risk/reward for investors looking to accelerate loan growth (an industry-wide rebound will provide upside to our fiscal 2025 year-over-year loan growth forecast of 6.3%). Nvidia “We see both in 2025. A year of mixed trends. In the first half, AI investments and NVDA Blackwell deployments driven by U.S. cloud customers maintained momentum in AI work-in-progress. However, in the second half, interest may shift to less crowded vehicles/assuming global economic recovery. Industrial chip makers will restock and automotive production picks up Cadence Design Systems “CDNS has invested aggressively in the digital space, improved its entire product portfolio, and is now present in all 20 of the top semiconductor companies (only 2 historically). , performs well across different stages of digital design. …We view CDNS as an attractive/defensive alternative leveraging persistent R&D (research and development) and higher visibility subscription-driven AI spending, rather than ( Bulky) hardware/capex exposed work-in-progress, he continued.
