Bank of America resets Nvidia stock forecast before earnings

Nvidia banal gained somewhat connected Friday and closed astatine $190.17, up 1.77%, which present puts it astatine astir 8% little than its October 29 peak, which had a closing terms of $207.04.

A batch of unit has been enactment connected the institution arsenic skepticism astir artificial quality is growing, and investors are eagerly awaiting Nvidia’s Q3 earnings, which volition beryllium released connected November 19.

On apical of a wide summation successful AI skepticism, determination were a mates of quality items that weren't bully for the stock.

First came the quality that hedge money manager Michael Burry of the "Big Short” fame is shorting Nvidia and Palantir. Then SoftBank Group revealed it has sold each of its Nvidia shares (32.1 million), worthy $5.8 billion, and decided to alternatively spell for an "all-in" stake connected OpenAI, arsenic reported by Reuters.

To marque the concern worse, Burry besides dropped an anti-AI bomb, with the assertion that AI hyperscalers are artificially boosting earnings. As the unit is increasing, Bank of America expert Vivek Arya and his squad person already addressed the AI bubble fears a fewer times, and person present wholly redone their forecast for Nvidia gross and EPS.

Analysts said that successful the adjacent term, Nvidia (NVDA) faces the pugnacious task of gathering precocious net expectations and precocious skepticism astir AI superior expenditures, which volition astir apt beryllium resolved erstwhile broader marketplace volatility caused by the authorities shutdown and involvement rates subsides.

The squad stated that the institution is the lone merchant spot supplier with proven full-stack, rack-scale execution successful ample AI clusters, which volition person 3 spot generations (Blackwell, Blackwell Ultra, and Vera Rubin) of acquisition by the 2nd fractional of 2026.

They besides noted that unreality superior expenditures worries thin to beryllium seasonal successful quality and are highest successful Q4, which volition apt beryllium resolved erstwhile the caller twelvemonth starts and unreality customers supply their superior expenditures outlooks.

More Nvidia:

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• Nvidia’s adjacent large happening could beryllium flying cars

• Bank of America revamps Nvidia banal terms aft gathering with CFO

Analysts raised their fiscal twelvemonth 2026/27/28 non-GAAP EPS estimates by 3%/12%/14% to $4.56/$7.02/$9.15 up of Q3 earnings. The squad raised its income estimates for fiscal years 2026, 2027, and 2028 from $204.14 cardinal to $208.48 billion, and from $271.62 cardinal to $300.19 billion, and from $343.59 cardinal to $383.95 billion.

In a probe enactment shared with TheStreet, Arya reiterated a bargain standing and the people terms of $275, based connected 30 aggregate his estimation for the terms to net ratio excluding currency for the calendar twelvemonth 2027, which is wrong Nvidia's humanities guardant twelvemonth terms to net scope of 25 to 56.