Burry may be short, but BoA sees Nvidia and Palantir moving further

• Bank of America set a $275 price target for Nvidia, implying an upside of more than 50% from current levels.

• Bank of America raised its price target on Palantir to $255 from $215, suggesting more than 40% upside potential.

• Michael Burry maintains bearish positions on both Nvidia and Palantir, believing that AI trading is in a bubble.

• If you’re thinking about retiring or know someone who is, there are three quick questions that make many Americans realize they may retire earlier than expected. take 5 minutes to learn more here

Dr. Michael Burry could have bearish positions on NVIDIA (NASDAQ: NVDA), Palantir (NASDAQ:PLTR), and a lot of worrying things to say about AI trading (spoiler alert: you think it’s in a bubble). But not everyone is on the same side as him, and while only time will tell if the bulls or bears prevail with AI technology names and trading in general (bubble or not bubble?), I think it’s a good idea to have some perspective.

As a potential investor in either company, I would say that both the bears and the bulls are worth listening to. And while the bears may seem much smarter, it’s really hard to know who will emerge victorious. In the case of the bear camp, there is arguably no one smarter than Dr. Michael Burry, a man who became famous thanks to one of the most brilliant and contrarian bets of this generation.

Aside from expanded valuations, I don’t think Dr. Burry has revealed anything that is as big as what he discovered many years before the stock market crash of 2008. In any case, Bank of America appears to be firmly in the bullish camp with the two names that Burry is short. Notably, the bank rates shares of GPU maker Nvidia and AI data titan Palantir as buys heading into the new year.

When it comes to Nvidia, it feels very alone outside of the bull camps, at least as far as the analyst community is concerned. Aside from Burry and a select few sell-side skeptics, it remains popular to be a bull for the company despite increased competitive pressures from companies like Google and its TPUs. As for Palantir, however, there are more skeptics of the name, likely due to its much higher valuation. Either way, Bank of America outlines some intriguing reasons why the two expensive but explosive growth titans could still have more room in the tank to push upwards in 2026.

Bank of America was right to remain bullish on Nvidia through 2025. And it doesn’t look like the big bank is about to change its mind anytime soon. Analysts at the bank see “relentless” demand for AI chips and other catalysts that could help push the stock to $275.

That implies a lot of upside from current levels, especially as the company goes through a difficult period leading up to its next earnings reports. With an increasing number of headlines surrounding the wave of competitive pressures (TPU and more), it will certainly not be easy to stay in the name to try to reach a target that currently suggests more than 50% advantage.

As the AI ​​revolution progresses, betting against Nvidia still looks like it could be a losing proposition as we enter the new year. Even if Dr. Burry is right about his bearish thesis, the trade may not unravel anytime soon.

Palantir appears to be the more difficult of the two stocks to own. However, analysts at Bank of America see the name as a “best-in-class AI enabler.” Many smart analysts seem to think the same. And while there will be plenty of name scares as the bears take aim, I think earnings results will dictate the stock’s trajectory.

It is very likely that many still underestimate the potential for growth and margin expansion in the new year. With a new price target of $255 (up from $215 per share), a gain of more than 40% is very possible. Either way, I don’t want to buy puts on the name here, especially given the huge question mark surrounding the growth acceleration potential of its AI Platform (AIP). It’s going to be big, but could it exceed expectations? That is the big risk for bears heading into 2026.

You might think retirement is about picking the best stocks or ETFs, but you’d be wrong. Even large investments can be a drawback during retirement. It’s a simple difference between accumulating and distributing, and it makes a difference.

The good news? After answering three quick questions, many Americans are reworking their portfolios and finding they can retire. earlier than expected. If you are thinking about retiring or know someone who is, take 5 minutes to learn more here.