Bank of America has reaffirmed its top stock picks for June, including tech heavyweights Nvidia and Apple, citing strong market runs and significant upside potential. The firm also highlighted other ‘Buy’-rated companies such as Toll Brothers, Dollar General, National Vision Holdings, and Citigroup, providing detailed rationales for each selection. These picks are supported by strong fundamentals, strategic growth initiatives, and in many cases, a clear focus on integrating artificial intelligence into their business models.
Bank of America is doubling down on its conviction in several key stocks, including tech giants Apple and Nvidia, as the market continues its upward trajectory heading into June. The investment bank has highlighted these and other companies as top ideas, projecting significant upside potential for investors.
Beyond the tech sector, other companies that have been screened by CNBC Pro and hold a 'Buy' rating from Bank of America include National Vision Holdings, Toll Brothers, Citigroup, and Dollar General.
Toll Brothers: 'Rare' Beat and Raise
Homebuilder Toll Brothers received high praise from BofA analyst Rafe Jadrosich, who described its latest quarterly report as a "rare" beat and raise. Despite a challenging macroeconomic environment, the company is "firing on all cylinders," with margins remaining "healthy/resilient." Jadrosich emphasized robust demand, particularly in the luxury home segment, and reaffirmed a Buy rating, calling Toll the firm's top pick due to its strategic positioning, capital return, and attractive valuation. The stock has seen a 12% decline over the past three months.
Dollar General & National Vision Holdings: Compelling Retailers
Analysts at Bank of America view both Dollar General and National Vision Holdings as highly compelling retail opportunities. Analyst Robert Ohmes highlighted Dollar General's strong momentum driven by store remodels and delivery partnerships with Uber and Instacart, anticipating gross margin upside. For National Vision Holdings, Ohmes advised investors to "buy the dip," citing potential catalysts for valuation recovery, including rising average ticket prices supported by premiumization, store segmentation, and innovative Meta AI glasses. Dollar General shares have fallen for three consecutive months and are down 17% in 2025, while National Vision plunged 29% in May.
Citigroup: 'Engine Rebuilt' with AI Focus
Citigroup, a top pick from Bank of America, has surged 67% over the past 12 months, with analysts believing there's more room for growth. Following CEO Jane Fraser's investor day, which included a $30 billion buyback authorization, analysts led by Ebrahim Poonawala noted the "camaraderie across the leadership team," signaling strong alignment and execution. Poonawala raised his 12-month price target for Citi to $170 from $150, urging investors to buy. He stated that shareholders are poised to witness the "full potential of this franchise, with the 'engine' rebuilt." Furthermore, Citi is proactively integrating artificial intelligence, engaging with leaders like Anthropic and Google.
Nvidia: AI Leadership and Strong Financials
Bank of America's positive outlook on Nvidia is rooted in its unique, full-stack leadership in artificial intelligence—spanning silicon, hardware, and software. The company's robust balance sheet and strong free cash flow are expected to fuel further ecosystem investments and enhance shareholder returns.
Apple: Gen AI and Services Growth
Apple maintains a 'Buy' rating from Bank of America for several reasons: an anticipated strong iPhone upgrade cycle in fiscal years 2025 and 2026, driven by the demand for hardware capable of supporting next-generation AI features; higher growth in Services revenue; improved margins from increased internal silicon development; ongoing capital returns; AI features potentially attracting greater institutional ownership; and manageable risks around legal issues.
