Piper Sandler Initiates NVIDIA at Overweight, $300 PT
Piper Sandler analyst David O’Connor initiates coverage on NVIDIA (NASDAQ: NVDA) with a Overweight rating and a price target of $300.
“Nvidia is the outright leader in AI Compute with 80% market share and 50% unit share. It continues to drive the industry forward with its annual cadence of next-gen products.
Running faster than competitors has allowed NVDA to maintain its leading position in an increasingly crowded space.
At the same time, industry supply/demand dynamics remain very favorable for AI Compute suppliers.
The takeoff of Agentic AI workloads this year has translated into a steep change in Compute demand, evidenced by GPU rental pricing trends.
Supply will likely continue to be constrained for the next 2-3 years. We estimate NVDA revenues growing at a 47% CAGR and earnings at a similar clip to $30 in FY30E.
The stock is among the cheapest in AI universe, trading at ~14x FY28E – implying a PEG of 0.3x.
We initiate at OW and set our CY28E PT to $300 based on a 14x multiple.”
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