Cantor Fitzgerald has reiterated its bullish stance on Nvidia, suggesting that the chipmaker’s meteoric rise may still have room to run.
The investment firm raised its price target on Nvidia shares to $300 from $240, implying a potential 59% upside from current levels, while maintaining its overweight rating on the stock.
Analyst C.J. Muse highlighted that despite Nvidia’s already-strong performance this year—shares are up about 41% year-to-date—the company’s long-term growth prospects remain compelling.
He attributed this outlook to the accelerating demand for artificial intelligence (AI) infrastructure and tokens, a trend he believes is still in its early stages.
AI demand continues to accelerate
Muse noted that AI token demand has “exploded” in the past 12 to 16 weeks, underscoring the strength of the sector’s expansion.
He framed Nvidia’s current position within a broader, ongoing technological shift, arguing that the company is at the heart of a massive and still-developing investment cycle.
“We are still in the early innings of a multi-trillion AI infrastructure build-out,” Muse wrote, pointing to hyperscale cloud providers as key early contributors.
These hyperscalers, the large-scale operators like Amazon, Microsoft, and Google, already represent hundreds of billions of dollars in projected demand for AI hardware and systems in the years ahead.
Muse also emphasized that demand is expanding beyond the traditional cloud giants.
Emerging players in “Neo-Clouds,” enterprise applications, and physical AI systems are contributing to the next wave of growth, reinforcing the belief that the current AI boom is far from a speculative bubble.
Multi-trillion dollar market potential
According to Muse, the ongoing AI infrastructure expansion could translate into a market worth between $3 trillion and $4 trillion by 2030.
This estimate reflects the growing interconnection between AI training, data processing, and energy-intensive hardware—areas where Nvidia’s technology plays a central role.
The analyst framed Nvidia’s position as pivotal, both as a supplier of advanced graphics processing units (GPUs) and as a strategic investor in the AI ecosystem.
He noted that the company’s products underpin much of the computational capacity driving today’s leading AI models.
Partnership with OpenAI adds further momentum
Muse also cited Nvidia’s new partnership with OpenAI as an important catalyst for the company’s future growth.
As part of this collaboration, Nvidia will invest up to $100 billion in OpenAI, the developer of ChatGPT, as OpenAI moves to deploy large-scale Nvidia systems requiring 10 gigawatts of power.
“What is unique to the ‘new’ relationship is to help OpenAI stand up as its own self-hosted hyperscaler,” Muse wrote, describing the arrangement as a “win-win” for both companies.
He added that Nvidia’s option to invest directly in OpenAI provides an additional strategic advantage.
For now, the market appears to share Cantor Fitzgerald’s optimism.
Nvidia remains a central figure in the AI investment narrative, benefiting from both surging infrastructure demand and its deepening ties with leading AI developers.
Nvidia’s shares gained 1.9% in premarket trading on Thursday. The stock gained 2% on Wednesday after reports said the company is planning to invest $2 billion in Elon Musk’s xAI.
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