NVIDIA Corporation (NASDAQ:NVDA) is one of the AI stock analysts they bet on. On Nov. 26, Bernstein reaffirmed his Outperform rating on Nvidia and kept his price target at $275, in response to the company’s weekend memo aimed at addressing several bearish concerns. Nvidia’s note addressed questions about accounts receivable, working capital, depreciation and the nature of its revenue streams, issues that had been weighing on sentiment in recent weeks.
Bernstein said the company’s explanations were generally reasonable and helped clear up some of the uncertainty investors had been discussing. The memo, which Nvidia circulated among sell-side analysts, has already drawn a lot of attention, with Bernstein reporting a spike in customer interest and multiple requests to review the details.
Previously, on November 10, analysts at Citi reiterated their Buy rating on NVIDIA Corp and raised the price target to $220 from $210. The price target increase comes amid expectations that the stock will receive a boost from its third-quarter earnings report. The strong earnings report will come supported by strong investments in artificial intelligence. Citi has also echoed revelations that the company has shipped 6 million Blackwell units, indicating strong demand and signaling near-term growth.
Consequently, the research firm expects the semiconductor company to generate $57 billion in sales for its October quarter, above consensus estimates of $55 billion. It also expects sales growth momentum to continue in the January quarter, with sales of $62 billion ahead of Wall Street estimates of $61 billion.
Analysts at Bank of America have also touted Nvidia as a compelling investment well-poised to capitalize on the AI boom. With the company revealing $500 billion in data center orders by 2025/2026, the investment bank expects its earnings per share to be $8 per share, representing a 50% increase in sales growth and a 70% increase in EPS.
NVIDIA Corporation (NASDAQ:NVDA) is a major player in AI, designing and supplying powerful GPUs and software platforms necessary for AI development and deployment. The company offers a complete solution that includes hardware, software such as the CUDA parallel computing platform and NVIDIA AI Enterprise, and services to create, train and run AI models.
While we recognize NVDA’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.