Cantor Fitzgerald maintains Overweight on NVIDIA stock, $200 target

Investing.com

Published May 21, 2025 07:22AM ET

Cantor Fitzgerald maintains Overweight on NVIDIA stock, $200 target

On Wednesday, Cantor Fitzgerald reiterated its Overweight rating on NVIDIA (NASDAQ:NVDA) with a steady price target of $200.00. The semiconductor giant, with its impressive $3.28 trillion market capitalization, maintains an excellent financial health score according to InvestingPro analysis, supported by a perfect Piotroski Score of 9. The firm's analysts highlighted the company's resilience despite recent challenges, including a projected $15 billion loss in Data Center revenues due to H20 China restrictions for the entirety of CY25. They anticipate a more positive July quarter guidance than market expectations, predicting revenue guidance of $46.0 billion compared to the consensus of $46.3 billion. This forecast includes a $5 billion impact from China but is expected to be mitigated by the significant ramp-up of NVIDIA's Blackwell products.

The analysts expect management to discuss a strong second half demand environment in the Data Center segment, with CY25 Data Center revenues projected to reach $200 billion, including the impact of the China embargo. This figure surpasses the current consensus of $175 billion. This optimistic outlook aligns with NVIDIA's impressive track record, having achieved 114.2% revenue growth in the last twelve months while maintaining robust gross margins of 74.99%. The focus on the earnings call scheduled for May 28th is also likely to be on the sustainability of AI infrastructure spending into 2026, although it may be too early for any official guidance.

NVIDIA is also anticipated to maintain its mid-70s gross margins in the second half of CY25, aligning with previous statements. The analysts foresee NVIDIA achieving an earnings per share (EPS) of $5.00 in CY25E, which is higher than the consensus estimate of $4.37, followed by an EPS of $6.50-7.00 in CY26E, compared to the consensus of $5.59.

Despite a significant rally from the lows on April 7th, NVIDIA shares are trading at 26.8x/19.9x the firm's expected CY25/26 earnings outlook, which suggests room for growth. Cantor Fitzgerald's analysts express confidence in the upcoming earnings report to clarify NVIDIA's revenue acceleration in the second half of CY25 and continue to recommend the stock as a top pick. Based on InvestingPro 's Fair Value analysis, NVIDIA appears slightly overvalued at current levels, with technical indicators suggesting overbought conditions. For deeper insights into NVIDIA's valuation and 18 additional exclusive ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, NVIDIA Corporation has been the focus of several noteworthy developments. On the earnings front, NVIDIA has been preparing for the full production of its rack-scale GB200 NVL 72 Blackwell Systems, with a transition to the next-generation Blackwell Ultra GB300 systems expected to start in the third quarter. Analysts from Citi have projected the integration of approximately 1 million GB300 units into the market by 2025. Meanwhile, NVIDIA announced NVLink Fusion, which allows integration with custom AI ASICs and CPUs, marking a strategic expansion in its AI infrastructure offerings.

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In terms of analyst ratings, NVIDIA received an Overweight rating from both Wells Fargo and Morgan Stanley, with price targets set at $185 and $160, respectively. Citi also maintained a Buy rating with a $150 price target, emphasizing NVIDIA's advancements in AI and data center markets. Additionally, Bank of America Securities reiterated its confidence in NVIDIA with a $160 price target, highlighting the company's diverse AI product portfolio and recent strategic deals.

Furthermore, NVIDIA has announced a partnership with Foxconn (SS:601138) and the Taiwan government to construct a new 10,000 Blackwell GPU supercomputer, with TSMC as a lead customer. This move is part of NVIDIA's broader strategy to bolster its international presence and expand its AI infrastructure capabilities. Despite facing challenges like the U.S. Commerce Department's ban on H20 sales in China, analysts remain optimistic about NVIDIA's growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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