Cantor Fitzgerald analyst C.J. Muse says investors are wrongly treating Nvidia as if it is losing the AI race and set a $350 price target, 67% above current levels. His call comes as Nvidia shares just posted their longest losing streak since 2022, ahead of Wednesday's earnings report.
Cantor Fitzgerald's C.J. Muse told clients in a Monday note that investors should aggressively buy Nvidia shares, arguing the market has the AI chip maker's story backward. He set a $350 price target, 67% above current levels. Muse said "it is time to close your eyes" and bet big on the stock.
A cheap stock on bullish estimates
Muse argued Nvidia looks inexpensive against especially bullish earnings estimates. He pointed to earnings-per-share estimates of $17 in 2027 and $25 in 2028, which put shares at 14 times 2027 estimates and 10 times 2028 estimates. He believes investors currently hold Nvidia less than its position in the broader market would suggest.
Financial engineering as a moat
Muse is upbeat on Nvidia's equity stakes in AI companies including OpenAI and Anthropic, plus revenue-sharing deals with neoclouds CoreWeave and Nebius Group. He called this approach more resilient than relying solely on chip sales, since it ties Nvidia to data-center buildouts beyond the major cloud providers. Nvidia is also expanding toward enterprise and sovereign customers, he said, while its plan to raise $500 billion for AI infrastructure with leading financial firms has turned its processors into a financeable, fungible asset class, in Muse's view.
A losing streak ahead of earnings
Nvidia's stock fell 2.9% on Monday, its seventh straight losing session and its longest such streak since Sept. 6, 2022, according to Dow Jones Market Data. Even so, Nvidia shares are up about 12% this year, trailing a 59% gain for the PHLX Semiconductor Index over the same period.
Meanwhile, Bloomberg reported that Nvidia customers could face price hikes of more than 15% on some AI chip servers for shipments next year. The Wall Street Journal separately reported that Nvidia is spending $6 billion on a licensing deal with startup Poolside to build an open-weight AI model rivaling Chinese offerings. Nvidia reports fiscal second-quarter earnings after the closing bell on Wednesday.
Source: MarketWatch
Trading involves risk.
Risk Disclaimer
