Wall Street Sees Golden Opportunity Amid AI Growth Surge

Nvidia stock has been through ups and downs during the week before its earnings report scheduled for November 19. However, this dip has been interpreted by Wall Street analysts as an opportunity instead of something to be worried about. 

Financial giants like Citi, Wolfe Research, and Bank of America Securities believe that Nvidia’s stronghold is still unquestionable and the short-term price changes could be more of an entry point than a warning sign.

Citi’s Stance

Citi keeps the “Buy” rating on Nvidia and sets a price target of $220 while having a 30-day “Upside” short-term call. The company is expecting Nvidia to surpass both earnings and future estimates, making $57 billion in sales during the October time, which is more than what the market is predicting at $55 billion. 

Moreover, the firm believes that the guidance for the January quarter will be $62 billion which is slightly more than what the market is expecting.

The firm points out that Nvidia’s announcement of 6 million GPUs shipped is a short-term factor that will drive the increase and has raised its FY26 – FY28 EPS numbers by as much as 8% to accommodate the growing worldwide AI capital expenditure. 

Citi perceives a considerable upside in the way forward by applying a 30x P/E multiple to its 2026 EPS estimate of $7.24.

Wolfe Research, Momentum Drives Confidence

Wolfe Research shares the same view with the market indicating that there is no doubt about Nvidia’s product becoming more and more popular among consumers, especially after the latter’s generous GTC reveals, which is regarded as a “clear upside” opportunity. 

The company is of the opinion that Nvidia has around 3.6 million Blackwell chips ERM in 2025 making it very likely for Blackwell and Rubin to have a combined revenue of $500 billion by the end of 2026.

The number implies over $300 billion from those chips alone in 2026 which is approximately 20% higher than Wolfe’s first estimates. Considering the ASPs are increasing more than 50% from one generation to another, Wolfe views the big margins coming from the sales as a major reason for the company’s profitability. 

Their base case for 2026 is $8 in EPS, which gives Nvidia a reasonable valuation at 25 times earnings. This is a rare combination of growth and value in today’s landscape of AI.

Bank of America amidst the Noise

Bank of America Securities has called the stock of Nvidia “compelling,” contending that the present price does not capture the extent of the upcoming AI infrastructure investments. The firm, among others, pointed to the Company’s figure of $500 billion in CY25/26 data center orders, which are expected to produce around $8 per share in 2026 EPS.

The company has an impressive growth trajectory of 50% in sales and 70% in EPS, however the stock is selling at an “undemanding” 24x PE multiple. 

BofA also minimizes the China export restrictions case, marking Nvidia’s business as “unhelpful but irrelevant” to the company’s near and mid-term path. They consider the firm as a major player in the AI ecosystem, possessing unequaled technological and financial capacities.

Temporary Dip, Not a Depression

Some investors might be unsettled by the fluctuations in Nvidia’s stock price, but analysts are united in their view that the company’s long-term growth engine will continue to be very powerful. 

A record-breaking demand for AI chips, increasing profit margins, and a data center pipeline makes Nvidia less of a candidate for short-term trades and more for long-term investment in generations.

The company is not only selling hardware but also the foundation of the next digital revolution. Each GPU delivered, and each data center agreement signed strengthens Nvidia’s position as a catalyst in the global transformation of AI. 

Thus, even though the stock price is fluctuating, the fate of Nvidia is going upwards. This dip is more about the market taking a breather. Nvidia’s dip should not be viewed as a warning, but rather one of the clearest buying opportunities of the year.