Bank of America equity analyst Vivek Arya continues to hold a positive outlook onNvidia Corp.(NASDAQ:NVDA), even after the chipmaker's recent ascent, which has made it the world's largest company, surpassingMicrosoft Corp.(NYSE:MSFT).

In a note shared with clients on Thursday, Arya noted that while Nvidia's sharp rise might prompt short-term profit-taking, he believes any resulting "volatility (is) likely to be short-lived," thanks to the company's robust fundamentals and attractive valuations.

This confidence is due to several factors:

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