What bubble? NVIDIA stock is ’born to run’ as analyst sets $7 trillion target

Published 09/10/2025, 16:32
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Investing.com -- Shares of NVIDIA (NASDAQ:NVDA) are up 2.5% Thursday and have tapped a new 52-week high after Cantor Fitzgerald analyst C.J. Muse raised his price target on the AI juggernaut to a Street-high $300 per share.

The new price target would represent a market value of $7.3 trillion for NVIDIA, which is already the most valuable company in the world at $4.7 trillion.

The price target hike from Muse follows investor meetings in New York City this past week, which included CEO Jensen Huang, CFO Colette Kress, and other Senior Executives.

While AI bubble talk is rampant on Wall Street, Muse said emphatically, “This is not a bubble."  He said we are just in the early stages of the AI investment cycle.

“We are still in the early innings of a multi-trillion AI Infrastructure build-out with just the Hyperscalers providing significant line-of-sight into hundreds of billions of demand for the next handful of years, never mind other drivers such as Neo-Clouds, Enterprise, and Physical AI,” Muse stated.

Muse said a key highlight of the trip was NVIDIA’s new partnership with OpenAI, which aims to establish OpenAI as a self-hosted hyperscaler. The goal is to eliminate margin stacking from server manufacturers and cloud providers, reducing the cost gap between NVIDIA and ASICs to about 15 percent. This is seen as a win for both companies and could add pressure to the ASIC market.

The company is also advancing its Extreme Co-Design initiative on an annual cycle to optimize the entire AI infrastructure. Customers want full-scale AI deployment, not just chips, and NVIDIA’s full-stack solution, including CUDA-X, supports that vision. Jensen Huang and his team remain intensely focused and highly competitive. As Huang put it, they are “getting things done,” and it is hard to see a future where NVIDIA does not hold at least 75 percent of the AI accelerator market, the analyst stated.

On EPS power, Muse said $8 per share in CY2026, versus the consensus of $6.26, is “very doable.”  In CY2027, EPS could rise to $11, compared to the consensus of $7.36, the analyst states.

“On this front, we are raising our price target to $300 (27x expected $11 in CY26) from $240 (30x expected $8 in CY26) - suggesting near-term upside of 60+%, with eventual upside more meaningfully as the company continues to propel itself to stretch goal of $50 in EPS into CY30 (and $3-4T AI Infrastructure world),” the analyst added.

He concludes: “In the words of the Boss... Baby, NVDA was (and continues to be) Born to Run....”

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