Although semiconductor giant Nvidia (NASDAQ:NVDA) has recently encountered volatility after a blistering run, analysts continue to see upside in NVDA stock. The latest endorsement comes from Cantor Fitzgerald, with its expert team raising the price target to $175 from $140. This forecast boost implies a nearly 39% lift from Tuesday’s closing price of $126.09.
According to a post from StreetInsider, Cantor analysts believe that NVDA stock still enjoys opportunity for forward expansion. In a research note, the experts remarked that “[w]e 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.”
In particular, the experts point to a possible inflection point regarding the broader integration of artificial intelligence (AI). As StreetInsider put it, the wider AI industry shows “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.”
Further, Nvidia’s competitive advantage continues to rise in strength, thus forcing rivals to play a desperate game of catch-up. However, the tech juggernaut can scale its innovations. Therefore, Cantor believes that NVDA stock will likely push higher.
Optimism in NVDA Stock Clashes with Correction Concerns
Fundamentally, a core catalyst for NVDA stock is the underlying enterprise’s graphics processors, which have dramatically improved AI performance a million-fold, per StreetInsider. That means Nvidia has effectively surpassed Moore’s Law. This is an observation that the transistor count on integrated circuits (ICs) will double every two years, accompanied by only a minimal cost rise.
Moreover, even though AI is in the early innings, the ecosystem has already generated significant advancements. In particular, innovations such as ChatGPT have accelerated learning and can potentially promote productivity enhancements. Therefore, NVDA stock still enjoys a very high ceiling to which it can grow. At the same time, Nvidia isn’t without concerns.
About a week ago, analysts discussed the possibility of the top-tier tech giants surpassing the $4 trillion market capitalization level. Some experts pointed to NVDA stock as the prospective candidate to reach the summit first. Shortly thereafter, Nvidia encountered a wave of selling pressure that temporarily took it below $3 trillion.
The bulls have attempted to recover from the corrective spell. Nevertheless, over the past five sessions, NVDA stock is down approximately 12%. Therefore, investors should take Cantor Fitzgerald’s optimism with some caution in mind.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
