Wall Street Giant Predicts NVIDIA (NVDA) 52% Rally... "Still Undervalued"

▲ NVIDIA (NVDA), US Stock/AI Generated Image

An analysis suggests that NVIDIA Corporation (NVDA), the leader in artificial intelligence (AI) semiconductors, will see an additional rally driven by strong chip demand. A prominent Wall Street investment bank set a target price of $350, indicating a potential explosive upside of over 52% from the current market price.

According to the cryptocurrency and financial media outlet Coingape on October 1 (local time), global investment bank Cantor Fitzgerald reconfirmed its "Overweight" rating for NVIDIA with a target price of $350. C.J. Muse, Senior Analyst at Cantor Fitzgerald, diagnosed that the massive hardware demand observed across the entire AI computing infrastructure is strongly driving NVIDIA's performance growth.

Technical indicators and valuation attractiveness also support the bullish outlook. Cantor Fitzgerald assessed that NVIDIA's exclusive accelerator ecosystem maintains long-term pricing power as global big tech companies accelerate data center construction to advance AI models. The 12-month forward price-to-earnings ratio (PER) also remains at around 28x, significantly below the past 5-year median of 55.92x, indicating that it is still undervalued compared to its strong performance.

Easing supply chain bottlenecks and accelerating mass production of next-generation architectures are also considered positive variables. As hyperscalers' capital expenditures (CAPEX) continue to expand, the backlog of orders for NVIDIA chips is steadily being processed. Wall Street expects that supply will struggle to keep up with demand in the short term, as long as the expansion pace of computing infrastructure by major clients such as Broadcom, Alphabet, and Meta does not slow down.

Experts evaluated that NVIDIA maintains firm market dominance despite macroeconomic uncertainties and concerns about a semiconductor peak-out. As the competition for hegemony in the AI ecosystem intensifies, NVIDIA's revenue visibility, as a supplier of core hardware, is expected to become even clearer.

[Key Article Summary]

-Cantor Fitzgerald maintained its target price of $350 and an Overweight rating for NVIDIA (NVDA).

-The possibility of an additional rally of over 52% was suggested, driven by surging demand for AI chips and data center infrastructure.

-Undervaluation appeal relative to performance, such as a lower forward PER compared to past averages, was highlighted.

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