UBS stated that this week's performance by large technology companies, including NVIDIA, highlights that the outlook for such companies "remains convincing."

Americas Chief Investment Officer and Global Head of Equities Ulrike Hoffmann-Burchardi noted that NVIDIA's overall strong quarterly results may provide some comfort to investors following signs of stagnation in the rally of large tech stocks.

The firm pointed out that valuations are at the "high end of historical ranges" but "market sentiment does not appear overly optimistic."