Woofun AI reports that Bank of America characterizes NVIDIA’s year-to-date underperformance against chip peers as a buying opportunity rather than a warning. Analyst Vivek Arya asserts that market fears regarding rising HBM component costs and custom chip competition are exaggerated.

Arya projects that higher pricing for the next-generation Rubin platform will offset HBM cost pressures, sustaining gross margins at mid-70% levels. He emphasizes NVIDIA’s scale advantages and $119 billion in supply chain commitments, noting that despite Google’s TPU presence, NVIDIA’s GPU revenue has grown 700-fold over the past decade. The firm expects NVIDIA to capture 65% to 70% of cloud provider AI infrastructure spending, with the current forward P/E ratio of 18.69x representing an 11-year low.