Nvidia: Here's why Cantor Fitzgerald raised its price target on the stock

I have to ask you, CJ, in terms of these price targets, how many times have you raised it over the last year or so as NVIDIA just kind of continues this upward trajectory? Yeah. Good morning, Leslie. You know, it's probably two or three times. And, you know, I think the, the, the, the, the great bang was, you know, a, a a year ago, you know, when you had that massive beat in, in August. And, you know, I think since then, you know, data center has continued to surprise. But when you, when you take a step back and you think about acceleration inside data centers looking forward, you know, we're only about 8 or 9% penetrated. And Jensen's view of the world is that we're going to 100%. And if that's right, there's a long runway ahead. And I would, I would surmise that the Street will be raising its price targets for, for many, many, many times over the coming years. Do you think that at these levels, the pace of innovation that you described, the runway that you described is already priced in or do you think it's still misunderstood by the market? I don't, you know, I think that the, the seismic shift last year was the announcement of moving to an annual cadence in terms of new technology releases. And it's a very powerful change statement where essentially I, I think Jensen is basically saying to, to everyone else that he competes with Catch me if you can. And, and his holistic view of the data center is one large GPU means that he's not only investing in, in core GPU, but CPUs, the networking overall networking fabric, all of the connectivity. And, you know, I think that if he can do what he has done in the prior decade, over the coming decade, that the the gains that he will offer and the reduction in the cost of compute will truly make AI ubiquitous. What companies, CJ or whole sections of this industry, therefore are are effectively dinosaurs. Because if that's what's happening and they're taking over all these other functions of creating a new kind of galactic computing platform, there have to be net losers that would otherwise be getting, you know, these orders and this much capital investment. Yeah, it's a great comment. You know, I think Broadcom did a great job talking about kind of Nvidia's mainframe strategy, as they call it, versus more of discreet best of breed. And, you know, I think that NVIDIA is really securing the training market. But I do think the inference market, you know, will have an opportunity for many other players, whether it's custom silicon, you know, by Broadcom Marvel, or whether it's AMD with their own GPU. So I do think that there's, you know, a a big enough playing field here for success for all those companies. But if I think about the company that's going to grow the fastest and hold the dominant share, I continue to think it'll be NVIDIA. And yet you say in your note that quote, AIROI remains a bit of an enigma today. What do you mean by that? And kind of what are you hearing from your channel checks on that front? So, you know, when you take a step back and think about Nvidia's data center business going from, you know, a billion or two a quarter to now 25 billion and, and obviously moving even higher over the coming quarters and, and years, you know, it, it, it begs the question, what's the return on this investment? And, you know, I think today we're sitting such early innings that it's going to be hard to see What we tried to outline in our note this, this morning was, you know, give certain use cases, whether it's, you know, in, in biotech or whether Walmart or, or things like that. And, and it's, you know, I'd say it's, it's the rightful, you know, question mark. But I think it's hard to truly get a bottoms up vision to the, to the benefits of these investments. But obviously that's the key question because if there isn't an ROIC, then at some point these investments will have to stop.