Cantor Fitzgerald Reiterates Overweight on NVIDIA, $240 PT

“AI remains a bright spot and in our view has become an area of relative certainty within a very uncertain world.

Infrastructure spend continues to move higher, supported by hyperscalers (capex forecasts now +57%/+20% in CY25/26 across MSFT, META, GOOGL, and AMZN vs. +40%/+9% prior 2mos ago), sovereigns (i.e., projects across US, China, EU, UAE, Saudi Arabia, etc.), neoclouds (demand for GPUaaS growing), and Enterprises (hearing proliferation of AI processes to optimize operations; driving need for AI factories).

Yes, we have seen some degrossing with momentum names losing luster within the current backdrop (temporary digestion in our view) and recent reports of challenges regarding integration of AI capabilities into business models (we believe a dynamic which is overdone – no concern from us with hyperscaler ROIC still strong).

We also have some reports out of China regarding willingness to adopt US accelerator solutions causing some agita in the AI trade (specifically today centered around the H20).

But we view these trepidations as noise today and there is zero change to our bullish thesis here as we remain in the infancy of AI development and deployment.

And we look for spending commentary across verticals and strong product cycle dynamics to continue driving the AI trade (yes, it’s that simple; buy the arms dealers).

Our top idea here remains NVDA (see our full EPS preview here), as we remain in the early innings of the Blackwell ramp which we believe sets up for meaningful beats/raises and EPS tracking to stretch goal of $8 in CY26 (supporting our PT of $240 at a 30x multiple).”

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