Longtime Nvidia Bull Larry Tentarelli Shrugs Off SoftBank, Michael Burry Trades As Having 'Zero Impact’ On AI Stock

Nvidia has polarized the investment community amid ongoing skepticism about AI.

• A strategist said he bought more Nvidia shares on Tuesday amid the SoftBank-induced sell-off.
• Despite the volatility, Nvidia stock is up more than 43% this year, propelling the company to the status of the “most valued” global corporation.
• Nvidia’s forward price-earnings (P/E) multiple at 33.3 times is reasonable when compared to Palantir, which trades at 208 times earnings.

Nvidia Corp. (NVDA) stock fell nearly 3% on Tuesday, with SoftBank’s stake sale serving as the downside trigger. The Jensen Huang-led company’s shares have been experiencing heightened volatility lately amid rising concerns about a potential artificial intelligence (AI) bubble burst and its China-related travails.

However, a longtime Nvidia investor was not one to be cowed, reaffirming his bullish stance on the company. Despite the volatility, Nvidia stock is up more than 43% this year, propelling the company to the status of the “most valued” global corporation.

Not Going To Flip

Blue Chip Daily technical strategist Larry Tentarelli said he was not going to flip bull/bear on daily headlines about Nvidia or the stock’s down days. “For those who let headlines shake them out of positions, it can be a difficult journey,” he warned.

The strategist said he held Nvidia for 29 of the past 30 months, barring a brief shakeout in April. This could potentially coincide with the market meltdown following President Donald Trump’s announcement of tariffs. He clarified that he did not sell Nvidia when a Financial Times report raised valuation concerns about the stock in 2023, or during the 2000 dot-com bubble burst, or amid the AI bubble calls over the past three years.

Tentarelli said, “What Softbank does, or Michael Burry or any other headline has zero impact on what I do.” “I follow charts with a timeframe and process that works very well for me.” He also disclosed that he bought more Nvidia shares on Tuesday.

The Burry-SoftBank Pushbacks

Nvidia’s stock fell 4% on Nov. 4 as traders reacted to hedge-fund manager Michael Burry’s Scion Asset Management making a $186.58 million bearish bet on Nvidia and AI bubble warnings from Wall Street firms. Separately, Burry warned about the unsustainable capital spending by tech companies, which was generating far less revenue growth.

The stock was down for three straight sessions before making a comeback, only to be spooked by Masayoshi Son-led SoftBank’s Nvidia exit. While reposing confidence in OpenAI, SoftBank sold 32.1 million Nvidia shares, including those held by the asset management subsidiary, for $5.83 billion.

However, Nvidia bulls noted that SoftBank's sales accounted for less than 0.1% of Nvidia's market capitalization.

Wall Street firms are largely bullish on Nvidia. According to Koyfin, 59 of the 64 analysts covering the company rate the stock as a ‘Buy’ or ‘Strong Buy.’ Four rate it ‘hold’, while one has a ‘Sell’ rating. The average price target for the stock is $230.78, implying about 20% upside potential from the last close.

Nvidia’s forward price-earnings (P/E) multiple at 33.3 times is reasonable when compared to Palantir, which trades at 208 times earnings.

The overwhelming fear is about the circular deals in the AI industry. A social-media user shrugged off SoftBank’s Nvidia divestment as a sale of a company to invest in another company that Nvidia is invested in and also sells chips to.

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