Bank of America Names Nvidia and Apple Top Picks as Rally Extends

Bank of America Securities named a selection of its favorite stocks to buy in June, highlighting technology giants Nvidia and Apple among its top picks as the equity market rally continues. The firm’s recommendations, issued on May 30, 2026, arrive with the S&P 500 hovering near record highs. As of 14:03 UTC today, Nvidia traded at $211.14, while Apple was priced at $312.06. The bank's own stock, Bank of America, saw its share price increase to $51.60.

Context — [why this matters now]

The latest recommendations from a major sell-side institution like Bank of America provide a critical temperature check on institutional sentiment during a sustained market advance. The current bull run has been primarily fueled by enthusiasm surrounding artificial intelligence infrastructure spending, easing inflation data, and market expectations for a future Federal Reserve rate cut. Bank of America's explicit endorsement of momentum-driven names like Nvidia alongside a stable mega-cap like Apple signals a strategy that seeks to participate in further upside while maintaining exposure to resilient balance sheets.

The selection of Nvidia reaffirms the unabated institutional belief in the AI investment theme, despite the stock's significant appreciation over the preceding 24 months. Conversely, Apple represents a quality asset with substantial cash reserves and a history of shareholder returns, often viewed as a defensive growth holding. This dual approach suggests that while the bank remains optimistic, it is cognizant of potential volatility and is not making an indiscriminate call on the entire technology sector.

The timing of the report is significant as the second quarter concludes. Portfolio managers often adjust holdings ahead of quarter-end, and high-conviction ideas from a major bank can influence fund flows. The recommendations serve as a direct counterpoint to growing concerns about market concentration, where a handful of technology stocks have driven a disproportionate amount of the S&P 500's gains year-to-date.

Data — [what the numbers show]

Bank of America’s selections come amid a mixed trading session for its highlighted names. Nvidia's share price was down 0.69% on the day, with an intraday range between $211.13 and $217.86. This slight pullback occurs after a historic rally that has seen the chipmaker’s market capitalization surpass the $5 trillion mark earlier in the year. Apple, in contrast, was up 0.39%, trading between $309.53 and $315.00, demonstrating relative stability.

The performance of these stocks against broader indices highlights their market leadership. Year-to-date, the Nasdaq-100 has advanced approximately 12%, heavily influenced by its largest constituents. Nvidia's gains have far exceeded this benchmark, while Apple's have been more modest but positive. Bank of America's stock also showed strength, rising 0.98% to $51.60, outperforming the Financial Select Sector SPDR Fund (XLF) on the day.

A comparison of recent performance underscores the divergence in momentum.

Ticker	Price	Daily Change	YTD Change (Approx.)
NVDA	$211.14	-0.69%	+35%
AAPL	$312.06	+0.39%	+8%
BAC	$51.60	+0.98%	+5%

The bank’s report likely incorporates earnings projections, with Nvidia’s forward price-to-earnings ratio remaining elevated compared to the S&P 500 average, reflecting high growth expectations.

Analysis — [what it means for markets / sectors / tickers]

Bank of America’s top picks have immediate implications for sector rotation and capital flows. A reaffirmed buy rating on Nvidia could provide support for the entire semiconductor ecosystem, benefiting suppliers like Taiwan Semiconductor Manufacturing Company and equipment makers like ASML. Sustained institutional interest in AI-centric stocks may continue to draw capital away from sectors with weaker growth prospects, such as traditional utilities or consumer staples.

The primary risk to this outlook is valuation compression. If upcoming economic data forces the Federal Reserve to maintain a restrictive policy stance for longer than anticipated, high-multiple growth stocks like Nvidia could face significant headwinds. A deterioration in global semiconductor demand or a slowdown in enterprise AI adoption would also challenge the thesis. The counter-argument is that Apple’s inclusion acts as a hedge; its strong services revenue and brand loyalty make it less susceptible to a pure multiple-driven correction.

Positioning data indicates that leveraged funds have recently increased net long positions in Nasdaq futures, suggesting speculative money aligns with the bullish institutional view. However, options market activity shows heightened demand for puts on both Nvidia and Apple, indicating that some investors are buying protection against a potential downturn. The flow from retail investors into these names has also remained consistently positive throughout the quarter.

Outlook — [what to watch next]

The immediate catalyst for Bank of America’s selections will be the May jobs report scheduled for release on June 5. A significantly weaker-than-expected number could bolster the case for rate cuts, benefiting growth stocks, while a strong report might reaffirm a higher-for-longer rate path. The next Federal Open Market Committee meeting on June 17-18 will be critical for clarifying the central bank's timeline.

Technically, traders will watch key support levels for Nvidia around the $205 price area, which has served as a consolidation zone. For Apple, a sustained break above the $315 resistance level could signal a new leg higher. The health of the broader market will be gauged by the S&P 500’s ability to hold above its 50-day moving average, currently near 5,400.

Upcoming earnings from major retailers in mid-June will provide crucial data on consumer resilience. Any signs of weakening demand could trigger a flight to quality, potentially benefiting Apple but harming more cyclical parts of the market. Monitoring bond yields, particularly the 10-year Treasury note, remains essential as a key driver of equity valuations.