Bank of America Merrill Lynch considers NVIDIA as one of the best "rebound stocks"

Analyst Vivek Arya of Bank of America stated on Monday that if the semiconductor industry rebounds, NVIDIA's stock would be a good choice. He expects the semiconductor industry to rebound in the fourth quarter of this year, as seasonal unfavorable factors may fade by then. Investors are eagerly awaiting NVIDIA's earnings report later this month, but Arya noted that historically, September is the worst-performing month for the semiconductor industry, so investors may need some patience. The good news is that the fourth quarter and the first quarter of the following year are usually much better for chip stocks, leading him to predict a rebound in the semiconductor industry at that time. In this scenario, Arya believes that NVIDIA, Broadcom, and KLA stocks will be his top picks, as these companies are "the most profitable suppliers in their respective end markets." As of 11:15 AM Eastern Time on Monday, NVIDIA rose by $5.48, or 5.23%, to $110.23