"Nvidia's AI Dominance: Undervalued Momentum or Overhyped Bubble?"

Bank of America suggests that buying Nvidia call options is a good way to profit from gains in the AI chipmaker's share price due to undervalued volatility in the options market. The bank's global equity derivatives team believes that the market is underestimating the range of outcomes for AI-related stocks, particularly Nvidia, and recommends using derivatives as a prudent strategy to chase the rally. Despite the potential sticker shock, buying outright call options on Nvidia has proven to be an effective way to benefit from the current rally, with Nvidia now dominating the U.S. options market.