Another groundbreaking prediction in the AI field: the boom is not a bubble, and NVIDIA's stock price is expected to rise by another 50%, with its market value reaching $7 trillion!

Analysts at Cantor Fitzgerald, a U.S. financial services firm, stated on Thursday that the artificial intelligence (AI) boom is not a bubble, as they believe there remains demand for hundreds of billions of dollars in the future and are confident that NVIDIA still has significant opportunities in the market.

Cantor Fitzgerald, founded by U.S. Commerce Secretary Lutnick, had its analysts raise their outlook after meeting with NVIDIA CEO Jensen Huang and other members of the management team. $NVIDIA (NVDA.US)$ The target price was raised to $300, implying that the stock could rise more than 50% from its current level.

Moreover, this target price implies NVIDIA’s market capitalization would reach $7 trillion, after the company recently became the first to achieve a market value of $4.5 trillion.

The boom is not a bubble

As NVIDIA secures multi-billion-dollar infrastructure deals with a small group of top AI companies, concerns about an AI bubble have intensified. However, analysts argue that the construction phase has only just begun: hyperscale chipmakers are expected to invest hundreds of billions of dollars in the coming years.

In their latest report, they noted that the AI industry is “developing at an exponential rate.” Beyond hyperscale enterprises, Cantor Fitzgerald’s team also believes that physical AI development, enterprises, and new cloud companies (leasing graphics processing units) will drive infrastructure demand in the “coming years.”

“Therefore, this is not a bubble; we are still in the early stages of this investment cycle,” the analysts stated.

NVIDIA firmly holds the 'throne'

In Cantor Fitzgerald’s view, NVIDIA’s collaboration with OpenAI, which will provide millions of GPUs for the AI startup’s next-generation models, indicates that “NVIDIA intends to position OpenAI as its own hyperscale processor.”

Analysts stated that this would help avoid profit stacking for server manufacturers and cloud service providers. Profit stacking refers to the markup of profits from different parts of the supply chain, leading to an increase in the final price.

Analysts noted that by eliminating profit stacking, the cost gap between NVIDIA chips and custom chips is “only 15% on average.” In their view, this represents a “true win-win” for both companies and could put pressure on the Application-Specific Integrated Circuit (ASIC) market, which is increasingly challenging NVIDIA’s dominant position.

Meanwhile, analysts at Cantor Fitzgerald also pointed out that NVIDIA’s annual product cadence allows for the “optimization of the entire AI infrastructure,” as customers require not just chips but also the scaling of AI deployments. NVIDIA offers a full-stack solution encompassing chips, networking, and software.

“In short, Jensen Huang and his team remain as focused and competitive as ever, and they are fighting to win. We believe that over time, NVIDIA will maintain at least 75% of the AI accelerator market share,” they wrote.

They added that the Cantor Fitzgerald team’s confidence in the growth of AI infrastructure demand and NVIDIA’s market share through 2030 has “significantly strengthened.”

Looking ahead to 2026, analysts expect NVIDIA’s earnings per share (EPS) to reach $8, surpassing Wall Street’s consensus estimate of $6.26. By 2027, NVIDIA’s EPS could hit $11, higher than the current consensus forecast of $7.36. It is these differences that make NVIDIA their top pick.

Finally, analysts emphasized that as the company continues to push toward its “stretch goal” of achieving $50 in EPS by 2030, the stock will have meaningful upside potential. By then, Wall Street estimates that the total addressable market for AI infrastructure could reach $3 trillion to $4 trillion.

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