Bank of America's Bullish NVDA Stance Amid Reddit Market Sentiment Discussions

This analysis is based on a November 29, 2025 Reddit discussion [1] and internal market data [0]. Bank of America reaffirmed its bullish position on NVDA, highlighting tailwinds like robust AI server demand, potential revenue from China-compliant chips, and supply chain diversification via an Intel partnership [1]. NVDA’s Q3 2025 earnings (reported November 20) showed record revenue of $57 billion (+62% YoY) and data center revenue of $51.2 billion (+66% YoY), with $500 billion in Blackwell and Rubin chip bookings through 2026 [2]. Despite these fundamentals, NVDA’s stock declined ~14.9% from October 29 to November 28, 2025 [0], aligning with user comments about a “rough month.” It rebounded slightly to $179.92 in after-hours trading on November 29, likely driven by BofA’s $275 price target (implied ~53% upside) and positive analyst sentiment from multiple major banks [3]. User discussions included contrasting views: some expected NVDA to improve in December [1], while others criticized analyst recommendations (comparing current bullishness to Cramer’s Lehman Bros. call) [1]. BofA’s valuation argument (~25x CY26E) contrasts with NVDA’s current P/E ratio of ~44.53 [0], reflecting ongoing valuation concerns.

1. Divergence Between Fundamental Strength and Short-Term Market Sentiment
   : NVDA’s record earnings and substantial bookings [2] suggest long-term growth, but the recent 14.9% price drop [0] indicates short-term market skepticism, possibly driven by valuation worries or profit-taking.
2. Analyst Sentiment vs. Retail Skepticism
   : BofA’s bullish stance, shared by peers [3], conflicts with Reddit user concerns about hidden motives in analyst recommendations [1], highlighting a trust gap between institutional and retail investors.
3. Circular Funding as a Emerging Market Narrative
   : Users identified circular funding (NVDA’s AI firm investments creating chip demand) as a new Reddit obsession [1], contrasting with CEO Jensen Huang’s framing of these investments as ecosystem-critical [5].

• Competition
  : Threats from Google TPUs and AMD MI chips could erode NVDA’s market share [1, 0].
• Regulatory Risks
  : Export controls reduced NVDA’s China revenue to ~5% [4], with ongoing policy changes posing further market access risks.
• Valuation
  : With a P/E ratio of ~44.53, NVDA trades at a premium, making it sensitive to growth slowdowns [0].
• Supply Constraints
  : Blackwell chip bottlenecks could limit short-term revenue [2].

• AI Server Demand
  : BofA’s thesis is underpinned by strong data-center GPU demand and NVDA’s ecosystem advantages [1, 3].
• China-Compliant Chip Revenue
  : Potential for revenue recovery in the Chinese market via compliant products [4].
• Long-Term Bookings
  : $500 billion in chip bookings through 2026 provides significant revenue visibility [2].
• Intel Partnership
  : Supply chain diversification could mitigate future production risks (details pending verification) [1].

NVDA reported record Q3 2025 earnings with $57B in revenue (+62% YoY) and $51.2B in data center revenue (+66% YoY) [2]. BofA reaffirmed a Buy rating with a $275 price target, implying ~53% upside [3]. The stock declined ~14.9% from October to November 2025 but rebounded slightly after-hours on November 29 [0]. User sentiment was mixed: expectations of December improvement, skepticism about analyst motives, and debates about circular funding [1]. Critical monitoring points include competition, regulatory changes, supply constraints, and hyperscaler spending trends [2].