Cantor: Nvidia still has quite a bit more room to run

Despite becoming one of the most valuable public companies in the world, NVIDIA Corporation (NASDAQ:NVDA) stock has “quite a bit more room” to run, Cantor Fitzgerald analysts said Wednesday.

“We have never seen a more-torrid pace of technology innovation and subsequent reduction in the cost of compute as we are seeing today - all driven by NVDA and its full system approach,” they wrote.

These dynamics are creating a strategic inflection point in the proliferation of AI, with no signs of slowing down due to accelerating product cycles, continued software innovation, and optimizations across the stack that enable significant scaling of compute units, analysts explained.

As such, Nvidia’s already solid competitive advantage continues to strengthen, forcing its peers to keep playing a game of catch-up.

“Based on the above and NVIDIA's clear technologic push at scale, we continue to look for the shares to push higher,” Cantor analysts said.

Over the last decade, Nvidia has improved AI performance a million-fold, surpassing Moore's Law and significantly reducing compute costs to enable AI adoption.

Despite early stages, advancements like ChatGPT mark the beginning of AI's growth, with future improvements in logic, multi-modal functions, and cultural adaptations, analysts said.

Nvidia CEO Jensen Huang projects another million-fold performance increase over the next decade, pointing to “a clear path forward from here as progress toward AI ubiquity,” Cantor’s team said.

“As such, we continue to view the company’s opportunity morphing from a % of Data Center capex to a % of global IT spend and soon to a % of GDP spending,” it continued, reiterating a Top Pick rating on the stock and raising the price target from $140 to $175.