Nvidia (NASDAQ:NVDA) notched a milestone yesterady that would have sounded like science fiction a few years ago – it blasted through the $5 trillion market cap mark, becoming the first company in history to do so.
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That came off the back of CEO Jensen Huang’s keynote at GTC. The event featured a series of announcements, including new collaborations for AI infrastructure with CoreWeave, Google, Microsoft, Oracle, xAI, and others; partnerships in Physical AI with Siemens, Caterpillar, and Toyota; a joint effort with the DOE to construct seven new supercomputers; a collaboration with Nokia to push forward AI-driven telecommunications and 6G innovations; initiatives to expand robotaxi operations, with DRIVE AGX Hyperion standing out; an operational AI partnership with Palantir; and the launch of the NVQLink architecture for integrating GPUs and QPUs.
Taking it all in, Cantor’s C.J. Muse, an analyst ranked among the top 1% of Street stock experts, says that such was the volume of announcements, listing them all would probably exceed his word limit. In any case, to Muse, what is becoming “abundantly clear is NVDA’s ability to leverage its CUDA-X libraries (the crown jewels) to open new markets and enable AI’s proliferation.”
For instance, Muse points out Nvidia is developing a new communications platform in collaboration with Nokia, leveraging its full-stack solution and Aerial library to introduce a new product line, the Aerial RAN Computer (ARC), aimed at positioning the U.S. at the forefront of the 6G revolution. NVIDIA is also rolling out NVQLink with the CUDA-Q library to accelerate advancements in quantum computing, allowing GPUs to be a “key beneficiary.” Additionally, Muse highlights the DRIVE Hyperion architecture, which will create ready-to-deploy robotaxis.
“Overall,” the 5-star analyst went on to say, “these are just a few of the exciting announcements highlighting the breadth of NVDA’s reach across virtually every market today.”
Meanwhile, Muse thinks current Street estimates are “WAY too low.” Huang noted that Nvidia now has over $500 billion in business booked for Blackwell/Rubin through 2026, including networking via NVLink, Spectrum, and InfiniBand – equivalent to 20 million GPUs, compared with Hopper’s lifetime shipments of 4 million GPUs, of which 6 million have already been delivered. This suggests roughly $350–400 billion in data center business is already secured for the next five quarters, well above the consensus forecast of $318 billion over the same period. When accounting for business yet to be booked, Muse’s previously highlighted EPS upside of $8+ for CY26 (vs. consensus at $6.31) now seems “very conservative,” likely tracking closer to $9–10, with prior data center revenue forecasts of around $300 billion now appearing on track toward $400 billion.
And while some market watchers have begun warning about a looming AI bubble, Muse tackles that concern head-on, arguing that NVDA is still “too inexpensive to ignore.” At just 21x his updated CY26 EPS estimate of $9–10, the stock’s valuation hardly screams excess. The picture becomes even more compelling when looking ahead to CY27; Muse had previously modeled $11 in EPS, but given current booking trends, even that now appears conservative.
“So we have zero concerns around any type of frothy valuation here, and with a clear path for numbers tracking meaningfully higher, NVDA remains our hands down Top Pick with plenty of room for continued upside,” the analyst summed up.
Bottom line, Muse rates NVDA shares an Overweight (i.e., Buy), backed by a $300 price target. If that target is reached, investors would be looking at returns of ~45% over the next year. (To watch Muse’s track record, click here)
Elsewhere on the Street, NVDA stock claims an additional 33 Buys, 2 Holds, and a single Sell, for a Strong Buy consensus rating. The forecast calls for one-year returns of ~12%, considering the average price target stands at $231.34. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.