Bank of America’s Investment Recommendations
Bank of America is encouraging investors to take advantage of the recent declines in several technology stocks. The Nasdaq Composite, which is heavily weighted towards tech, has slipped into correction territory, having fallen 12% from its peak in December. Year-to-date, it has experienced an approximate 8% decline, which is more severe than the S&P 500’s drop of 3.6%. However, the firm believes that some key stocks in the sector have experienced excessive selling.
Recommended Tech Stocks
Among the stocks that Bank of America rates as strong buy options are Analog Devices, Nvidia, Broadcom, Marvell, and AppLovin. The firm suggests these stocks are well-positioned for potential growth despite the current downturn.
Analog Devices Insights
This week, Bank of America advised investors to capitalize on the downturn in Analog Devices. Analyst Vivek Arya noted that after discussions with the management team, he believes the company is well-prepared for future growth. “ADI is optimistic about a recovery in the automotive and industrial markets in the second half of 2025,” he mentioned, despite uncertainties regarding the exact growth trajectory. The stock, which is down 4.6% this year, continues to be highlighted as a strong investment opportunity.
Marvell Technology Prospects
For Marvell Technology, Arya highlighted multiple positive factors. He stated that after meetings with CEO Matt Murphy, he left with an optimistic view of both short-term and long-term growth opportunities. The company is poised to significantly benefit from its opportunities in the data center market, which Arya expects will expand, pushing the total addressable market towards around $100 billion. Despite a 37% drop in share price this year, Marvell remains a compelling investment.
AppLovin’s Growth Potential
The mobile app publishing company, AppLovin, is also seen as a highly attractive investment. Analyst Omar Dessouky’s recent meetings with the firm’s management revealed that its competitive position is solid, particularly in the face of increased digital spending. Although the company has faced scrutiny from short sellers, Dessouky believes this presents an opportunity for investors to acquire a rapidly growing stock at a significant discount compared to giants like GOOGL and META. The stock has declined nearly 5% so far this year.
Broadcom’s Financial Strength
Bank of America has rated Broadcom as a Buy due to its substantial exposure to various sectors such as smartphones, data centers, telecommunications, and enterprise storage. With EBITDA and free cash flow margins exceeding 45%, Broadcom stands out as one of the most profitable companies in the semiconductor realm, suggesting it will continue to provide strong cash returns to investors.
Nvidia’s Continued Dominance
Finally, Bank of America maintains a Buy rating for Nvidia, with a price objective of $200. Following a series of product announcements at the GTC conference, combined with discussions with the CFO, the firm sees Nvidia sustaining its competitive edge in a rapidly growing infrastructure and services market valued over $1 trillion. Nvidia continues to lead the AI value chain with its comprehensive full-stack model that integrates hardware, software, systems, services, and developer support.
