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Cantor Fitzgerald sees even more room for NVIDIA's growth, raises stock PT

Published 2024-06-26, 10:26 a/m
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On Wednesday, Cantor Fitzgerald maintained its Overweight rating on NVIDIA (NASDAQ:NVDA) and increased the stock's price target to $175 from $140.

The firm's assessment is based on NVIDIA's significant role in driving technological innovation and reducing computing costs. NVIDIA, now one of the largest market cap companies with an approximate value of $3 trillion, is at the forefront of a strategic inflection in the proliferation of artificial intelligence (AI), which is expected to continue growing.

NVIDIA is witnessing an unparalleled rate of technological advancement, according to Cantor Fitzgerald's analysis. This progress, coupled with the company's comprehensive system approach, is contributing to a rapid decrease in the cost of computing. The analyst pointed out that these factors are fueling the expansion of AI applications, a trend that shows no sign of abating given the acceleration of product cycles, with NVIDIA updating on an annual basis.

The company's continuous software innovation and optimizations across the stack are enabling significant scaling of compute units. This has allowed NVIDIA to reinforce its competitive moat, keeping rivals in a constant state of catch-up. Cantor Fitzgerald's positive outlook on NVIDIA is also based on the company's technological advancements on a large scale.

Cantor Fitzgerald reiterated NVIDIA as a top pick in the market, expecting the stock to continue its upward trajectory. The firm's decision to adjust the price target reflects confidence in NVIDIA's sustained leadership in technology and its potential for further growth in the AI sector. The new price target of $175 represents Cantor Fitzgerald's anticipation of NVIDIA's shares pushing higher in the foreseeable future.

In other recent news, Nvidia (NASDAQ:NVDA), a leading AI chip manufacturer, has been a focal point in the tech sector. The company recently saw its shares rise significantly, contributing to a broader recovery in the sector. Analysts from Citi have raised their price target for Nvidia to $150, maintaining a buy rating on the stock. This decision follows an increase in their CY25/26 EPS forecasts by 7% and 13%, respectively, based on anticipated growth in production.

In investment activity, Cathie Wood's ARK ETFs sold a substantial number of Nvidia shares, indicating strategic adjustments to its portfolio.

InvestingPro Insights

With NVIDIA (NASDAQ:NVDA) capturing the attention of analysts and investors alike, real-time data and expert insights can provide a deeper understanding of the company's financial health and market position. NVIDIA's market capitalization stands at an impressive $3.1 trillion, underscoring its significant influence in the technology sector. The company's Price-to-Earnings (P/E) ratio is currently at 72.45, reflecting high investor expectations for future earnings growth, which analysts anticipate in the current year. Additionally, NVIDIA's revenue has seen a staggering increase, with the last twelve months as of Q1 2025 showing a 208.27% growth, indicating the company's successful expansion and market penetration.

Two noteworthy InvestingPro Tips for NVIDIA include its perfect Piotroski Score of 9, which suggests that the company is financially healthy and operating efficiently. Furthermore, NVIDIA's prominence as a key player in the Semiconductors & Semiconductor Equipment industry is evident through its technological advancements and strategic positioning. For those looking to delve deeper into NVIDIA's potential, InvestingPro offers a wealth of additional tips—there are 20 more detailed insights available that can guide investment decisions. Readers can explore these tips and benefit from an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

The company's stock price movements have been volatile, yet it has demonstrated a high return over the last year, with a 210.41% price total return. This volatility and performance are essential considerations for investors seeking to capitalize on NVIDIA's growth trajectory. With NVIDIA's next earnings date on August 15, 2024, investors and analysts will be eagerly watching for the company's continued performance in the dynamic AI sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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