NVIDIA Corporation (NASDAQ:NVDA) continues to be recognized as one of the top AI stocks that investors should monitor. On October 9, Cantor Fitzgerald maintained an “Overweight” rating on the stock, elevating its price target to a record Wall Street high of $300 per share from the previous $240 after holding discussions with the company’s management.
“We held investor meetings in New York City with NVDA management last week, which included CEO Jensen Huang, CFO Colette Kress, and Toshiya Hari (IR), along with other senior executives.”
The management team elaborated on the recent collaboration with OpenAI.
“The aim is to streamline margin stacking by server ODMs and CSPs, allowing the cost difference between NVDA and ASICs to average just 15% – a favorable outcome for both parties, likely intensifying pressures on the ASIC sector,” reported Cantor analysts, led by C.J. Muse, in a Thursday investor note. “The firm is consistently advancing at Extreme Co-Design annually, facilitating the optimization of the entire AI infrastructure (as no one prefers to buy just chips; they desire to deploy AI on a large scale), supported by a comprehensive solution including CUDA-X.”
The analysts predict that Nvidia will attain earnings of $8 per share in the calendar year 2026. They also highlighted a notable increase in token demand over recent months, leading to higher profits per token.
“Platforms like OpenAI are currently achieving gross margins of 50-70%, resulting in all GPUs being sold out. Customers are urgently seeking available compute resources. Specifically, in the last 12-16 weeks, we have observed a significant shift – likely associated with the explosive growth of time-based reasoning alongside multimodal inputs, particularly in video where context length is considerably extended.”
The firm is confident that the swift and widespread adoption of generative AI indicates that it is not merely a passing trend.
“In the previous year, recommender systems have integrated Generative AI,” Muse pointed out. “Search engines have transitioned to Generative AI. Social media has shifted towards Generative AI. User-generated content, advertising recommendations, everything has evolved from traditional machine learning to Generative AI. NVDA anticipates a $2 trillion investment from conventional compute to Generative AI alone. This is far from a bubble; rather, the market is starting to recognize how ‘quality’ AI can produces significant positive returns on investments.”
NVIDIA Corporation (NASDAQ:NVDA) focuses on AI-powered solutions, providing platforms for data centers, autonomous vehicles, robotics, and cloud computing services.
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