Nvidia Features As Top Pick By UBS

UBS named chipmaker Nvidia Corporation NVDA a "top pick," citing its "wide moats" in the sector. Plus, the company is enjoying tailwinds from Micron Technology Inc's MU upbeat quarterly report, with officials noting they expect the chip shortage to ease over the coming year.

• Analyst Timothy Arcuri believes that Nvidia will likely benefit from building more "stable" revenue sources around its GPU and software moats. At the same time, Marvell Technology Inc MRVL can use its "broad portfolio" and 5-nanometer investments in a host of new applications and opportunities. UBS has a buy rating on Nvidia.
• Related Content: Read How Analysts Reacted To Micron Post Q1 Earnings
• Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms. 
• Nvidia's chips serve a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems.
• Nvidia has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.
• Nvidia's $40B Arm Deals Faces FTC Roadblock: All You Need To Know
• Price Action: NVDA shares traded higher by 4.37% at $289.38 on the last check Tuesday.