Bank of America reiterated its buy rating on Nvidia, calling the chipmaker its overall sector top pick. Separately, Nvidia said it arranged as much as $500 billion in loans for customers buying its computer chips, apparently backstopping up to $125 billion of that borrowing itself.
Bank of America keeps Nvidia as its top pick
Bank of America reiterated a buy rating on Nvidia and Advanced Micro Devices on Thursday, telling clients both stocks remain top ideas. According to Bank of America: "AMD remains top CPU pick, NVDA overall sector top pick."
Bank of America did not attach a new price target to the Nvidia call, unlike several other companies it covered the same day.
Nvidia backs a $500 billion loan push
On Monday, Nvidia said it was teaming up with Wall Street institutions including Blackstone, BlackRock and Goldman Sachs to arrange an extra $500 billion in loans for its customers, so they can keep buying Nvidia's computer chips. Nvidia will apparently backstop up to $125 billion of that borrowing itself.
Nvidia CEO Jensen Huang said the company's computer chips are now an investible asset that customers could effectively mortgage. BlackRock CEO Larry Fink called the arrangement a new form of financial engineering.
Other tech names raise fresh cash
The financing push is not limited to Nvidia. Chip company Intel is raising $20 billion in new money at $95 a share, more than twice the price the stock traded at the start of the year. Alphabet has raised nearly $500 billion through stock sales and borrowing so far this year.
Sources: CNBC, MarketWatch
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