• Cantor Fitzgerald reiterates Overweight rating on NVIDIA with a $350 price target, citing stronger data-center visibility and hyperscaler spending.
  • Investor positioning remains underweight, setting up potential for a sharp rally, says analyst C.J. Muse.
  • Key catalysts include GPUs becoming a financeable asset class and sustained neocloud growth through 2027-28.

A Bullish Call Amidst Underweight Positioning

Cantor Fitzgerald is holding firm on its bullish stance for NVIDIA, reiterating an Overweight rating and a $350 price target, with the stock remaining a Top Pick. Analyst C.J. Muse argues that investors are still underweight the AI chipmaker, which could fuel a sharp rally as conviction builds.

"We believe the setup is very, very fast," Muse said in a note to clients, emphasizing that the market has yet to fully price in the strength of data-center revenue visibility and the durability of hyperscaler capital expenditure.

The call comes as NVIDIA continues to dominate the AI compute landscape, with demand for its graphics processing units (GPUs) showing no signs of slowing. Muse points to improving clarity on data-center revenue streams, rising hyperscaler spending that extends through 2027-28, and the growing acceptance of GPUs as a financeable asset class—a trend that could unlock new capital flows into the sector.

Catalysts on the Horizon

Muse highlights several near-term catalysts that could drive the stock higher. Chief among them is the increasing visibility into data-center revenues, which reduces uncertainty around NVIDIA's growth trajectory. Additionally, hyperscalers—the cloud giants that are the primary buyers of AI infrastructure—are ramping up their capital expenditure plans, providing a multi-year tailwind.

Another structural shift is the emergence of GPUs as a financeable asset class. As these chips become recognized collateral for loans and leases, it could accelerate adoption and monetization, further entrenching NVIDIA's market position. This trend, coupled with sustained growth from neocloud providers, underpins Cantor's confidence in the stock's upside.

"We see a clear path to continued outperformance," Muse added, noting that valuation remains attractive relative to the long-term growth potential of AI.

Market Context

NVIDIA shares have been a standout performer in the tech sector, but recent trading has been choppy as investors weigh concerns about competition and margin pressure. Yet Muse believes the market is underestimating the company's momentum, especially as AI infrastructure spending shows no signs of abating.

The analyst's reiteration of the $350 target—well above current levels—signals strong conviction. For investors who have been on the sidelines, Muse's message is clear: the time to get in may be now, before the next leg of the rally takes hold.

This article was updated to clarify Cantor Fitzgerald's rating and price target.