Bank of America Securities released a research report that stated that the stock price of Nvidia (NVDA.US) may be vulnerable to profit-taking by investors in the near future due to significant gains in the second quarter. However, due to the group's solid fundamentals and valuations, it is believed that any volatility may be short-lived.

The bank mentioned that Nvidia's GenAI hardware deployment is only in its second year of the cycle, and the advantages of the next-generation dedicated Blackwell AI accelerator system will begin later this year. In addition, the stable demand from cloud customers and the stock's valuation give the market confidence. The bank pointed out that genAI deployment is a key task competition among the most well-funded customers, and maintains Nvidia as the top stock pick, with a "buy" rating and a target price of $150.