Nvidia stock gained slightly on Friday and closed at $190.17, up 1.77%, which now puts it at about 8% lower than its October 29 peak, which had a closing price of $207.04.

A lot of pressure has been put on the company as skepticism about artificial intelligence is growing, and investors are eagerly awaiting Nvidia’s Q3 earnings, which will be released on November 19.

On top of a general increase in AI skepticism, there were a couple of news items that weren’t good for the stock.

First came the news that hedge fund manager Michael Burry of the “Big Short” fame is shorting Nvidia and Palantir. Then SoftBank Group revealed it has sold all of its Nvidia shares (32.1 million), worth $5.8 billion, and decided to instead go for an “all-in” bet on OpenAI, as reported by Reuters.

To make the situation worse, Burry also dropped an anti-AI bomb, with the claim that AI hyperscalers are artificially boosting earnings. As the pressure is increasing, Bank of America analyst Vivek Arya and his team have already addressed the AI bubble fears a few times, and have now completely redone their forecast for Nvidia revenue and EPS.

Bank of America raised its long-term sales estimates for Nvidia.

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Bank of America raises its Nvidia its estimates for 2026/27/28

Analysts said that in the near term, Nvidia (NVDA) faces the tough task of meeting high earnings expectations and high skepticism around AI capital expenditures, which will probably be resolved when broader market volatility caused by the government shutdown and interest rates subsides.

The team stated that the company is the only merchant chip supplier with proven full-stack, rack-scale execution in large AI clusters, which will have three chip generations (Blackwell, Blackwell Ultra, and Vera Rubin) of experience by the second half of 2026.

They also noted that cloud capital expenditures worries tend to be seasonal in nature and are highest in Q4, which will likely be resolved when the new year starts and cloud customers provide their capital expenditures outlooks.

More Nvidia:

  • Nvidia makes a major push for quantum computing
  • Nvidia’s next big thing could be flying cars
  • Bank of America revamps Nvidia stock price after meeting with CFO

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

In a research note shared with TheStreet, Arya reiterated a buy rating and the target price of $275, based on 30 multiple his estimate for the price to earnings ratio excluding cash for the calendar year 2027, which is within Nvidia’s historical forward year price to earnings range of 25 to 56.

Analysts noted downside risk factors for Nvidia:

  • Weakness in the consumer-driven gaming market,
  • Competition with major public firms,
  • Larger than expected impact from restrictions on computer shipments to China
  • Lumpy and unpredictable sales in new enterprise, data center, and auto markets,
  • Potential for decelerating capital returns,
  • Enhanced government scrutiny of Nvidia’s dominant market position in AI chips.

Nvidia’s recent activity

  • Nvidia and Deutsche Telekom are building a €1 billion ($1.2 billion) data center in Germany, which  is set to begin operating in early 2026, according to a Bloomberg report.
  • Nvidia shared at the APEC summit that it will expand South Korea’s AI infrastructure with over a  quarter of a million Nvidia GPUs across its sovereign clouds and AI factories. South Korea’s  Ministry of Science and ICT (MSIT) plans to deploy up to 50,000 of the latest Nvidia GPUs.
  • The company unveiled plans with Samsung Electronics to build a new AI factory. The AI factory will combine Samsung’s semiconductor technologies with Nvidia’s platforms to lay the groundwork for  AI-driven production.
  • The company presented the first U.S.-made Blackwell wafer, on October 17, produced at TSMC’s semiconductor manufacturing facility in Phoenix, Arizona, according to a Reuters report.
  • Nvidia and Nokia entered into a strategic partnership to add NVIDIA-powered, commercial-grade AI-RAN  products to Nokia’s  RAN portfolio, enabling communication service providers to launch AI-native  5G-Advanced and 6G networks on Nvidia platforms. Nvidia will invest $1 billion in Nokia at a subscription price of $6.01 per share.
  • The company will build with Oracle the U.S. Department of Energy’s largest AI supercomputer. The Solstice system will feature 100,000 Nvidia Blackwell GPUs. Another system, Equinox, will include 10,000 Nvidia Blackwell GPUs and is expected to be available in the first half of 2026.
  • Nvidia announced NVQLink, a new open architecture that integrates Quantum Processing Units (QPUs) with classical GPUs. The platform provides an open approach to quantum integration, supporting 17 QPU builders, five controller builders, and nine U.S. national labs.

Related: Bank of America resets dotcom giant’s price target after earnings