--- title: "Wall Street analysts say the market is misjudging NVIDIA, and now is the time to heavily invest" type: "News" locale: "en" url: "https://longbridge.com/en/news/296845089.md" description: "Cantor Fitzgerald analyst C.J. Muse believes the market has misjudged NVIDIA, and now is the time to heavily invest. He points out that investor sentiment is overly pessimistic and recommends significant buying. Based on optimistic earnings expectations for 2027-2028, the stock price appears cheap, with a target price of $350 (67% higher than the current price). Muse is optimistic about NVIDIA's strategic initiatives in the AI ecosystem and financial engineering methods, believing its value has not been fully recognized" datetime: "2026-08-25T01:30:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296845089.md) - [en](https://longbridge.com/en/news/296845089.md) - [zh-HK](https://longbridge.com/zh-HK/news/296845089.md) generator: "portal-rs" --- # Wall Street analysts say the market is misjudging NVIDIA, and now is the time to heavily invest An analyst stated that investors currently treat Nvidia (NVDA) stock as if the company has "lost" in the artificial intelligence race, but the analyst believes this view is fundamentally mistaken. C.J. Muse of Cantor Fitzgerald wrote in a report to clients on Monday, "It's time to close your eyes" and make a big bet on Nvidia stock. Although Muse is uncertain about what the next positive catalyst for Nvidia stock will be, he stated, "When this stock starts to take off, we believe its momentum will be very, very rapid." Muse pointed out that based on the extremely optimistic earnings expectations of $17 per share for the calendar year 2027 and $25 per share for the calendar year 2028, Nvidia's stock appears particularly cheap. He noted that the stock is currently trading at only 14 times the expected earnings for 2027 and 10 times the optimistic expectations for 2028. He strongly recommends that investors who are confident in Nvidia's earnings potential and its ability to capture more value in the AI ecosystem buy the stock aggressively. Muse's target price of $350 is 67% higher than the current level. He believes that investors are currently in a "low allocation" state regarding the stock, meaning Nvidia's weight in portfolios is lower than its weight in the overall market. Muse stated that Nvidia has surpassed the role of a mere chip supplier. The company has adopted controversial "financial engineering" methods, including investing in AI companies like OpenAI and Anthropic, and has reached revenue-sharing agreements with next-generation cloud service providers like CoreWeave (CRWV) and Nebius Group (NBIS). Muse is optimistic about this series of operations. In his view, these initiatives have not yet been fully recognized by the market. Muse said this strategy "is becoming increasingly critical, and we believe that as today's strong AI infrastructure development progresses further, this strategy will shine." As major cloud service giants increasingly shift their focus to custom chip projects, Nvidia's dominant position in the AI semiconductor market has raised concerns. However, Muse believes that revenue sharing with next-generation cloud service providers is a "more resilient" strategy, as Nvidia is empowering data center construction that goes beyond major cloud service providers. He mentioned that Nvidia is also continuously expanding its customer base, incorporating more enterprises and sovereign projects. Muse added that Nvidia is committed to providing a complete AI system covering racks, networks, and other components, and the revenue-sharing strategy supports this layout. Muse stated that Nvidia's equity investments and revenue-sharing arrangements, along with its collaboration with top financial institutions to raise $500 billion for AI infrastructure, as well as deals to exchange computing power for equity in AI startups, have turned its graphics processing units (GPUs) into a "financable, increasingly interchangeable asset class." In his view, this makes NVIDIA "extremely difficult to bypass," even if it loses to competitors at some level of the technology stack. "Because it is often NVIDIA's financing and software that enable the infrastructure of these hyperscale cloud service providers to be built from scratch," Muse said. According to Dow Jones Market Data, NVIDIA's stock price fell 2.9% on Monday, marking the seventh consecutive trading day of decline, the longest losing streak since September 6, 2022. So far this year, NVIDIA's stock has risen about 12%, while the Philadelphia Semiconductor Index has surged by 59% during the same period. Meanwhile, reports indicate that NVIDIA is reportedly planning to raise prices for its AI chip servers. Last Saturday, it was reported that some of NVIDIA's major customers could face price increases of over 15% based on the chip generations and memory requirements of the systems. The report noted that the adjusted prices are expected to be implemented for shipments next year. Last Saturday, it was reported that NVIDIA is planning to build an open-weight AI model through a new licensing agreement worth $6 billion with AI startup Poolside. 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