Nvidia (NVDA) Memo Calms Investors as Bernstein Reaffirms Outperform

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI stocks analysts are betting on. On November 26, Bernstein reaffirmed its Outperform rating on Nvidia and kept its price target at $275, responding to the company’s weekend memo aimed at addressing several bearish concerns. Nvidia’s note tackled questions about receivables, working capital, depreciation, and the nature of its revenue flows—topics 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 that investors had been debating. The memo, which Nvidia circulated to sell-side analysts, has already drawn significant attention, with Bernstein reporting a surge in client interest and multiple requests to review the details.

Earlier on November 10, analysts at Citi reiterated a Buy rating on NVIDIA Corp and raised the price target to $220 from $210. The price target hike comes amid expectations that the stock will receive a boost from its third-quarter earnings report. The strong earnings report will come at the back of robust investments in artificial intelligence. Citi has also echoed disclosures that the company has shipped 6 million Blackwell units, signaling strong demand and indicating near-term upside.

Consequently, the research firm expects the semiconductor company to deliver $57 billion in sales for its October quarter above consensus estimates of $55 billion. It also expects the sales growth momentum to continue into the January quarter, with sales of $62 billion above 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 disclosing $500 billion in 2025/2026 data center orders, the investment bank expects its earnings per share to come in at $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 as it designs and supplies powerful GPUs and software platforms needed for AI development and deployment. The company provides a full-stack solution that includes hardware, software like the CUDA parallel computing platform and NVIDIA AI Enterprise, and services for building, training, and running AI models.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.