NVIDIA (NVDA) Stands Out as Cantor’s Top AI Idea Amid Infrastructure Boom

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating on the stock with a $240.00 price target driven by strength in artificial intelligence infrastructure spend.

Indeed, artificial intelligence infrastructure spend continues to accelerate on the back of hyperscalers, sovereigns, neoclouds, and enterprises. Hyperscalers alone have had their capital expenditure forecasts risen to 57% and 20% for calendar years 2025 and 2026, across big tech names such as Microsoft, Meta, Google, and Amazon.

The firm has also highlighted several challenges, but noted that these are only temporary. Overall, Nvidia remains Cantor’s top idea especially with the company being in the early stages of its Blackwell product cycle, positioning it for major beats and raises.

“Yes, we have seen some degrossing with momentum names losing luster within the current backdrop (temporary digestion in our view) and recent reports of challenges regarding integration of AI capabilities into business models (we believe a dynamic which is overdone – no concern from us with hyperscaler ROIC still strong). We also have some reports out of China regarding willingness to adopt US accelerator solutions causing some agita in the AI trade (specifically today centered around the H20). But we view these trepidations as noise today and there is zero change to our bullish thesis here as we remain in the infancy of AI development and deployment. And we look for spending commentary across verticals and strong product cycle dynamics to continue driving the AI trade (yes, it’s that simple; buy the arms dealers). Our top idea here remains NVDA (see our full EPS preview here), as we remain in the early innings of the Blackwell ramp which we believe sets up for meaningful beats/raises and EPS tracking to stretch goal of $8 in CY26 (supporting our PT of $240 at a 30x multiple).”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

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