Cantor Fitzgerald Stays Bullish On NVIDIA
Cantor Fitzgerald analyst C.J. Muse reiterated an Obese score and a $350 worth forecast on NVIDIA whereas discussing the implications of President Donald Trump’s current China go to.
Talking with CNBC on Friday, Muse stated NVIDIA’s bigger alternative extends past chip gross sales into China. He argued that increasing the corporate’s CUDA software program ecosystem inside Chinese language merchandise might show extra strategically vital over the long run.
Forward of NVIDIA’s earnings report, Muse stated he expects the corporate to ship one other “beat-and-raise” quarter. He additionally stated NVIDIA might announce a serious share repurchase program, which he believes might develop into a significant catalyst for the inventory.
AI Demand And Taiwan Semiconductor Relationship In Focus
Muse stated compute demand stays bought out throughout the semiconductor trade, whereas Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) continues to symbolize a key provide constraint.
Based on Muse, NVIDIA advantages from its dominant relationship with Taiwan Semiconductor, positioning the corporate favorably whilst traders debate growing competitors throughout the AI chip market.
He additionally famous that many long-only traders stay underweight NVIDIA regardless of the inventory’s current rally.
Muse stated NVIDIA nonetheless seems cheap relative to its anticipated earnings progress and known as it “the most cost effective title” in his protection universe based mostly on ahead earnings estimates.
The analyst stated Cantor Fitzgerald would “wholeheartedly” purchase NVIDIA inventory forward of earnings, after earnings and all through 2026 and 2027.
China Headlines And Earnings Drive Momentum
Investor sentiment improved after studies indicated the U.S. cleared a number of Chinese language corporations to buy NVIDIA’s H200 AI processors, reviving optimism surrounding potential China-related gross sales progress.
Choices merchants additionally elevated positioning forward of NVIDIA’s earnings launch. SpotGamma founder Brent Kochuba instructed CNBC on Friday that markets are trying to reprice China reopening to NVIDIA.
NVIDIA shares have rallied sharply in current weeks as traders proceed betting that AI infrastructure demand and geopolitical developments might assist one other part of progress for the corporate.
Earnings And Analyst Outlook
NVIDIA is scheduled to report quarterly outcomes on Could 20.
Wall Road expects earnings of $1.76 per share, up from 96 cents a yr earlier. Income is projected at $79.08 billion, in contrast with $44.06 billion within the prior-year interval.
The inventory trades at about 46 instances ahead earnings, reflecting a premium valuation relative to friends.
The analyst consensus score on NVIDIA stays Purchase, with a median worth forecast of $286, in keeping with current Wall Road information.
Latest analyst actions embody:
- TD Cowen maintained a Purchase score and raised its worth forecast to $275 on Could 15.
- UBS Group AG maintained a Purchase score and raised its worth forecast to $275 on Could 14.
- RBC Capital Markets maintained an Outperform score and a $250 worth forecast on Could 14.
NVDA Value Motion: Nvidia shares had been up 0.70% at $226.89 throughout premarket buying and selling on Monday. The inventory is approaching its 52-week excessive of $236.54, in keeping with Benzinga Professional information.
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