BofA analyst Vivek Arya believes chipmaker Nvidia Corp could benefit from growth in several areas.
Arya chose Nvidia as his top large-cap sector pick.
Nvidia and fellow semiconductor businesses Marvell Technology, Inc and Advanced Micro Devices, Inc, can all immensely benefit from the continued growth in cloud computing, among other factors, Arya said.
Arya also chose ON Semiconductor Corp as his top small- to mid-cap pick, saying the company would benefit from its automotive technology.
Previously semiconductor companies had fewer drivers than now, such as computers and smartphones.
However, presently, there are multiple end markets served by a consolidated set of chip vendors, delivering proprietary products and generating solid free cash flow margins….