Bank of America has identified Nvidia as one of the companies poised for upside growth as the summer progresses. With solid fundamentals and a compelling valuation, Nvidia is well-positioned heading into the second half of the year. The firm’s research indicates that Nvidia’s GenAI hardware deployments are still in the early stages of a potential 3-5 year cycle, with a significant long-term opportunity in the AI market. Additionally, the upcoming launch of Nvidia’s next-gen purpose-built Blackwell AI accelerator systems is expected to drive demand from cloud customers, providing further upside potential for the stock.
Another stock highlighted by Bank of America is Carnival, a cruise company that has faced challenges in recent years, including headwinds from the Covid-19 pandemic. Despite these difficulties, Carnival is showing signs of recovery with better-than-expected earnings and positive commentary on future bookings. Analyst Andrew Didora believes that Carnival’s cost savings initiatives and strong balance sheet position will drive a better valuation multiple, making the stock an attractive investment opportunity. With a price target increase and potential for 40% upside, Carnival is a compelling option for investors looking for growth in the travel sector.
Payment company Block has seen its stock price decline in 2024, presenting a buying opportunity for investors, according to analyst Jason Kupferberg. Despite concerns around US GPV growth and SMB performance, Kupferberg believes that Block’s fundamentals remain strong and that the stock is undervalued. With sell-side estimates on the rise and a focus on attractive valuations, Block is positioned for potential upside as market conditions improve.
Palantir Technologies, a software company that has seen significant stock price gains this year, remains a solid buy ahead of earnings in August, according to analyst Mariana Perez Mora. Despite the recent price appreciation, Mora believes that the market is underestimating the company’s potential, offering an attractive entry point for investors. With positive catalysts on the horizon, including possible inclusion in the S&P 500 and growing business through government contracts, Palantir’s bullish trends and strong technicals make it a compelling investment opportunity for those seeking exposure to AI adoption trends.
Bank of America’s research highlights several stocks that are well-positioned for growth in the coming months. From established companies like Nvidia and Carnival to up-and-coming firms like Block and Palantir Technologies, these stocks offer unique opportunities for investors looking to capitalize on market trends and emerging technologies. By carefully analyzing the firm’s research findings, investors can make informed decisions about their investment portfolios and potentially benefit from the upside potential of these recommended stocks.