Analysts at Wall Street brokerage Cantor Fitzgerald expect chipmaker Nvidia (NVDA) to lead the Santa Claus rally.
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In a note to clients, Cantor Fitzgerald said that NVDA stock is “ripe for outperformance” heading into year-end and 2026. While the analysts acknowledge that the artificial intelligence-trade (AI) has been under pressure recently, they still see upside ahead for shares of Nvidia.
“We believe that these fears are overdone and shortsightedly missing the forest for the trees as we remain at the cusp of a massive AI-related demand inflection,” writes Cantor Fitzgerald in a year-end note. The financial services firm expects the value disconnect in Nvidia’s stock to be resolved next year when “the AI trade is likely off to the races once again.”
Nvidia Stock Treads Water
Cantor Fitzgerald has a Buy-equivalent overweight rating and $300 price target on NVDA stock. The firm’s bullish note comes as Nvidia’s share price has largely traded sideways since the company delivered its third-quarter financial results in November.
Over the past month, NVDA stock has risen a modest 3%. Analysts say many investors have moved to the sidelines amid growing concerns that the AI-trade could be in a bubble and as many technology stocks look overvalued at current levels. For its part, Cantor Fitzgerald isn’t worried and expects NVDA stock to rebound and lead the market higher.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 41 Wall Street analysts. That rating is based on 39 Buy, one Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $263.58 implies 40.55% upside from current levels.
Read more analyst ratings on NVDA stock