Cantor Sticks to Bullish View on Nvidia Amid Decline

Cantor Fitzgerald is sticking to its optimistic view on Nvidia stock despite Tuesday's decline of 2.1%. Analyst C.J. Muse reiterated a Buy rating and $350 price target, implying a 55% upside from Tuesday's close.

The analyst expects AI infrastructure spending to drive Nvidia's growth, despite questions about macroeconomic pressure, debt, and supply constraints. According to Muse, Nvidia is the 'cheapest' stock among compute companies based on 2028 earnings estimates, suggesting its valuation will look less demanding over time.

Cantor also sees positioning as supportive, with Nvidia remaining under-owned by both hedge funds and long-only investment managers. If operating results continue exceeding expectations, those investors may be forced to rebuild exposure, creating an additional source of demand for the shares.