Nvidia (NVDA) stock remains in the spotlight as the chip giant bolsters its position in the artificial intelligence (AI) space through continued innovation and strategic investments, such as the recently announced OpenAI (PC:OPAIQ) deal. On Friday, top Cantor Fitzgerald analyst C.J. Muse reiterated a Buy rating on NVDA stock with a price target of $240, expressing confidence about the company’s dominant position as an AI infrastructure company.
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Cantor Fitzgerald Analyst Is Confident About NVDA Stock’s Growth Potential
Muse stated that he has been focused on two key questions over the last year. First, he has been keen about what Nvidia intends to do with the excess free cash flow generated from the robust growth in its data center business. Second, he is curious about how the new emerging data center players like OpenAI, Oracle (ORCL), xAI, Coreweave (CRWV), Lambda, and others, fund their planned “hundreds of billions” investments in AI infrastructure.
The 5-star analyst added that he got the answer to these questions when Nvidia announced its $100 billion investment in ChatGPT maker OpenAI. “And with this decision, we believe NVDA is solidifying its position as THE de facto AI infrastructure company, quarterbacking the robust AI industry buildout that is in its infancy today,” said Muse.
Muse is not concerned about the doubts that have emerged following the Nvidia-OpenAI partnership around the circularity of vendor financing and a potential AI bubble, as he believes that the AI boom is just getting started. In fact, his analysis suggests “staying long and strong the AI-levered group,” with Nvidia being his top pick with a clear path to a market capitalization of more than $10 trillion.
Interestingly, Muse ranks No. 84 among more than 10,000 analysts on TipRanks. He has a success rate of 71%, with an average return per rating of 34.1% over a one-year period.
Is Nvidia Stock a Buy Right Now?
Given the solid demand for Nvidia’s AI GPUs (graphics processing units), Wall Street has a Strong Buy consensus rating on the stock based on 36 Buys, two Holds, and one Sell recommendation. The average NVDA stock price target of $216.50 indicates 15.4% upside potential. NVDA stock has rallied 40% year-to-date.
