Burry May Be Short, But BoA Sees Nvidia and Palantir Moving Higher

• Bank of America has a price target on Nvidia of $275, which implies more than 50% upside from current levels.

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

• Michael Burry has a bearish stance on both Nvidia and Palantir, believing that the artificial intelligence industry is in a bubble.

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Dr. Michael Burry may take a bearish stance on NVIDIA (NASDAQ: NVDA), Palantir (NASDAQ: PLTR ), and a lot of worrying things about the artificial intelligence industry (spoiler alert: he thinks it’s a bubble). But not everyone is in his camp, and while only time will tell whether bulls or bears will prevail in the name and AI technology trading in general (bubble or no bubble?), I do think it’s a good idea to have some perspective.

As a potential investor in both companies, I think both bulls and bears are worth listening to. While the bears may appear to be much smarter, it’s hard to tell who will come out on top. As far as the short camp goes, it’s arguably no smarter than Dr. Michael Burry, who’s known for one of the smartest, most contrarian bets of his generation.

Aside from expanding valuations, I don’t think Dr. Burry has released anything as big as what he found many years before the 2008 stock market crash. Regardless, Bank of America appears to be firmly in the bull camp with two names that Burry is shorting. Notably, the bank tagged shares of GPU maker Nvidia and artificial intelligence data giant Palantir as new year buys.

Nvidia, for its part, is pretty much alone outside of the bull market, at least as far as the analyst community is concerned. Beyond Burry and a handful of sell-side skeptics, bullish sentiment on the company remains popular despite greater competitive pressure from the likes of Google and its TPU. However, there are more skeptics about the name Palantir, probably because of its much higher valuation. Regardless, Bank of America outlines some interesting reasons why these two pricey but explosive growth giants still have more room to move higher in 2026.

Bank of America is right to remain optimistic about Nvidia’s prospects in 2025. And the big bank doesn’t appear to be changing its tune anytime soon. Analysts at the bank believe “ongoing” demand for artificial intelligence chips and other catalysts could help push shares to $275.

That suggests plenty of upside from current levels, especially if the company goes through a rough patch leading up to its next earnings report. With more and more headlines surrounding the wave of competitive pressure (TPU and beyond), it’s certainly not going to be easy to continue to maintain that reputation and try to achieve a goal that currently shows value of over 50% upside.

As the AI ​​revolution continues to evolve, shorting Nvidia continues to look like a money-losing proposition heading into the new year. Even if Dr. Burry’s bear theory is correct, this trade probably won’t unravel anytime soon.

Palantir appears to be the harder of the two stocks to own. Bank of America analysts, however, consider the name a “best-in-class” AI enabler. Many smart analysts seem to think the same thing. While this name is going to cause a lot of panic as bears take aim, I do think the earnings results will determine where the stock goes.

It’s likely that many still underestimate the potential for growth and profit expansion in the new year. With a new price target of $255 (up from $215 per share), gains of over 40% are likely on the way. Regardless, I wouldn’t want to buy a put option on this name here, especially given the huge question marks surrounding the growth acceleration potential of its artificial intelligence platform (AIP). It will be big, but will it exceed expectations? This is a huge risk for bears heading into 2026.

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