CJ Muse, a semiconductor equity research analyst at Cantor Fitzgerald, said his firm will wholeheartedly buy Nvidia stock [1].
This bullish stance comes as the semiconductor industry faces intense scrutiny over export controls and the sustainability of the artificial intelligence boom. A significant price target increase from a major research firm suggests continued confidence in the scalability of AI hardware demand.
Speaking during an appearance on CNBC’s “Squawk on the Street” in May 2024, Muse said the firm sees approximately 49% more upside for the stock from its price at that time [2]. He linked this projection to the sustained demand for Nvidia's AI-focused graphics processing units (GPUs) and the anticipation of the company's earnings reports [3].
Muse also highlighted a specific development regarding international trade. He said the H200 GPUs have been cleared for sales to 10 Chinese technology firms [4]. This clearance is a critical factor for the company, as the U.S. government has previously restricted the export of high-end AI chips to China to protect national security.
The analyst's optimism coincides with the company's ability to navigate complex regulatory environments while maintaining a dominant market position. By securing approvals for the H200 model, Nvidia can penetrate a key global market that was previously limited by trade barriers [4].
Muse said the combination of these factors, strong GPU demand, strategic sales to China, and upcoming financial disclosures, justifies the firm's aggressive buying strategy [1, 3].
“We will wholeheartedly be buying the stock.”
The bullish outlook from Cantor Fitzgerald underscores the critical role that regulatory approvals play in the valuation of AI companies. The clearance of H200 sales to Chinese firms suggests that Nvidia can maintain a revenue stream in East Asia despite ongoing geopolitical tensions, potentially offsetting the risks associated with U.S. export restrictions.
