S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $240.00 price target on Nvidia (NASDAQ:NVDA) stock, citing continued strength in artificial intelligence infrastructure spending. The semiconductor giant, currently trading near its 52-week high with a market capitalization of $4.34 trillion, has demonstrated remarkable revenue growth of 86% over the past year according to InvestingPro data.
The research firm highlighted that AI infrastructure spending is increasing, supported by hyperscalers whose capital expenditure forecasts have risen to 57% and 20% for calendar years 2025 and 2026, respectively, across Microsoft, Meta, Google, and Amazon.
Additional spending drivers include sovereign projects across the US, China, EU, UAE, and Saudi Arabia, growing demand for GPU-as-a-Service from neoclouds, and enterprise adoption of AI processes to optimize operations.
Cantor Fitzgerald acknowledged some recent market concerns, including momentum stock degrossing, challenges in AI business model integration, and reports from China about adoption of US accelerator solutions, but characterized these as temporary issues.
The firm emphasized that Nvidia remains its "top idea" as the company is in the early stages of its Blackwell product cycle, which Cantor believes positions Nvidia for significant earnings beats and raises, with earnings per share potentially reaching $8 in calendar year 2026. With earnings scheduled in just two days, investors can access comprehensive valuation metrics and 20+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Nvidia has seen several analysts raise their stock price targets, reflecting optimism about the company’s future performance. Baird increased its price target to $225, citing significant momentum in GB200 shipments and a positive outlook for future shipments. Stifel also raised its target to $212, expecting Nvidia to exceed expectations and increase guidance due to strong demand for AI-related products. Evercore ISI joined in, lifting its target to $214 while noting Nvidia’s current valuation metrics.
Additionally, Nvidia launched its Spectrum-XGS Ethernet technology, aimed at connecting geographically dispersed data centers into unified AI computing facilities. This development enhances Nvidia’s existing technology, allowing data centers to operate as a single system despite being in different locations. Meanwhile, global investment funds have shifted their focus towards the semiconductor sector, with significant purchases indicating renewed interest in AI themes. These recent developments highlight Nvidia’s ongoing advancements and the market’s positive sentiment toward the company.
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