Bank of America resets Nvidia stock forecast after private meeting

Core Viewpoint - Investors are concerned about a potential bubble in artificial intelligence, leading to a decline in Oracle and Nvidia stocks following earnings reports and market reactions [1]. Group 1: Stock Performance - Oracle stock closed 10.84% lower at $198.84 after its earnings report [1]. - Nvidia stock closed 1.55% lower at $180.93, marking a 12.6% decline from its peak of $207.04 on October 29 [1]. Group 2: Market Reactions - President Trump's statement on December 8 regarding Nvidia's ability to sell H200 AI chips to China had minimal impact on Nvidia's stock [2]. - Bank of America continues to endorse Nvidia as a top pick, indicating confidence in the company's future despite current market fears [3]. Group 3: Nvidia's Future Outlook - Nvidia's VP of Investor Relations indicated that current GPU-based LLMs are outdated compared to upcoming models trained on Blackwell GPUs, expected to launch in early 2026 [4]. - Nvidia anticipates a $500 billion sales outlook for Blackwell/Rubin/Networking in 2025 and 2026, with partnerships potentially adding to this figure [5]. - Analysts noted that the impact of the Trump Administration's decision to allow H200 GPU sales to China is still uncertain, pending formal licensing and demand assessments [6]. Group 4: Analyst Ratings - Bank of America analyst Vivek Arya reiterated a buy rating for Nvidia with a target price of $275, based on a price-to-earnings ratio estimate for 2027 [6].