Cantor Fitzgerald’s CJ Muse on Nvidia: We will 'wholeheartedly be buying’ the stock
Speakers
CJ Muse
— Senior Managing Director for Semiconductor Equity Research at Cantor Fitzgerald
Summary
CJ Muse of Cantor Fitzgerald discusses Nvidia ahead of its earnings, expecting a beat and raise and a share buyback announcement. He highlights attractive valuation at 15x forward earnings and a sold-out compute environment. He recommends buying the stock aggressively into and after earnings, through 2026 and 2027.
- CJ Muse maintains a buy rating and $350 price target on Nvidia.
- He expects another beat-and-raise quarter from Nvidia.
- A share buyback announcement is anticipated, historically leading to outperformance.
- Nvidia trades at 15x next year's earnings, the cheapest in his coverage.
- Compute is sold out; TSMC bottleneck benefits Nvidia's market share.
- Long-only investors are underweight, creating potential for chasing on catalysts.
- Muse is wholeheartedly buying Nvidia into and after earnings.
- He remains bullish on Nvidia through 2026 and 2027.
Trade Ideas
Buy Nvidia into earnings and beyond.
Nvidia is trading at 15x next year's earnings, making it the cheapest name in coverage. Expects a beat-and-raise quarter and a likely buyback announcement, which historically leads to outperformance. Compute is sold out with TSMC as a bottleneck, benefiting Nvidia's market share. Long-onlys are underweight, so a catalyst like a buyback could trigger chasing. Therefore, wholeheartedly buying Nvidia into and after earnings, through 2026 and 2027.
