UBS named chipmaker Nvidia Corporation (NASDAQ:NVDA) a "top pick," citing its "wide moats" in the sector. Plus, the company is enjoying tailwinds from Micron Technology Inc's (NASDAQ:MU) upbeat quarterly report, with officials noting they expect the chip shortage to ease over the coming year.
- Analyst Timothy Arcuri believes that Nvidia will likely benefit from building more "stable" revenue sources around its GPU and software moats. At the same time, Marvell Technology Inc (NASDAQ:MRVL) can use its "broad portfolio" and 5-nanometer investments in a host of new applications and opportunities. UBS has a buy rating on Nvidia.
- Related Content: Read How Analysts Reacted To Micron Post Q1 Earnings
- Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms.
- Nvidia's chips serve a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems.
- Nvidia has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.
- Nvidia's $40B Arm Deals Faces FTC Roadblock: All You Need To Know
- Price Action: NVDA shares traded higher by 4.37% at $289.38 on the last check Tuesday.
