Analyst Says Nvidia Set to Regain Leadership as AI Fears Fade

This article first appeared on GuruFocus.

Nvidia (NASDAQ:NVDA) shares are positioned for renewed strength heading into year-end and 2026, according to analysts at Cantor Fitzgerald, who said the stock is ripe for outperformance despite recent consolidation. In a year-end note, the firm argued that investor concerns around a potential AI bubble have weighed on sentiment, but said those fears are overstated.

Cantor said Nvidia’s recent sideways trading reflects caution rather than deteriorating fundamentals, noting that the broader AI trade has come under pressure even as long-term demand drivers remain intact. The firm believes the market is nearing a major AI demand inflection point and expects the valuation disconnect in Nvidia shares to correct in 2026 as enthusiasm for AI spending reaccelerates.

Cantor maintains a Buy-equivalent overweight rating and a $300 price target on the stock. Nvidia shares have gained about 3% over the past month, a muted move that analysts say reflects investors temporarily sitting on the sidelines.