Cantor Fitzgerald Reiterates Overweight on NVIDIA (NVDA), Says AI Demand Proves It’s “Not a Bubble”

Core Insights - NVIDIA Corporation is recognized as a leading AI stock, with Cantor Fitzgerald raising its price target to $300 per share from $240 after management meetings [1] - The company is focusing on partnerships, particularly with OpenAI, to enhance its AI infrastructure and reduce costs associated with server ODMs and CSPs [2] - NVIDIA is projected to achieve $8 earnings per share by 2026, with a significant increase in token demand noted [3] Financial Performance - OpenAI and similar platforms are achieving gross margins of 50-70%, indicating strong demand for GPUs, which are currently sold out [4] - The shift towards generative AI across various sectors, including search and social media, is expected to drive $2 trillion in spending from traditional compute to generative AI [5] Market Trends - The rapid adoption of generative AI is seen as a sustainable trend rather than a bubble, with evidence of meaningful positive ROI from quality AI solutions [5] - The company is actively involved in optimizing AI infrastructure through a full-stack solution, including CUDA-X, to meet the growing demand for AI deployment at scale [2]