Cantor Fitzgerald has designated NVIDIA as its top semiconductor pick, citing undervaluation amid expectations for sustained AI-driven demand.
The investment firm argues that NVIDIA's stock price does not reflect its expanding role across multiple layers of the AI ecosystem, which Cantor Fitzgerald describes as a "5-Layer AI Cake." The firm also suggests NVIDIA is creating a sixth layer through financial strategies, positioning the company to benefit from broader AI infrastructure growth rather than a zero-sum competition.
Cantor Fitzgerald sets a calendar-year 2027 earnings-per-share target of $17 for NVIDIA, with the stock trading at roughly 14 times that estimate. For 2028, the firm projects EPS of $25, implying a forward multiple near 10 times. Both targets exceed current consensus expectations, reflecting confidence in NVIDIA's revenue trajectory as AI adoption accelerates.
NVIDIA's stock closed at $214.72 on August 21, down 0.98%, before edging up to $215.38 in after-hours trading. The firm is also reportedly in talks to invest in AI startup Perplexity, signaling further expansion into the AI value chain.
Cantor Fitzgerald's bullish stance aligns with Rosenblatt Securities, which reiterated its positive rating on NVIDIA and expects upcoming earnings to surpass market forecasts. Historical data from Cantor's ProPicks AI tool shows strong performance for related picks, including Siemens Energy at +231.5% and Sandisk at +189%, though past results do not guarantee future outcomes.
