Piper Sandler initiates Nvidia with an overweight rating and a $300 target, banking on a 47% revenue CAGR while navigating potential regulatory headwinds from the Department of Justice.
Piper Sandler initiated coverage with Overweight and $300 target, citing 47% revenue CAGR and 80% AI compute market share.
Piper Sandler has initiated coverage on Nvidia with an overweight rating and a $300 price target, citing the company's dominant 80% AI compute market share. Despite the bullish outlook, the target remains conservative compared to the current analyst consensus of $327.18, reflecting a disciplined valuation approach amid ongoing antitrust scrutiny.
The firm argues that Nvidia's earnings growth is outpacing its share price appreciation, and by applying a conservative 14x multiple to 2028 earnings, the stock appears undervalued relative to its massive market dominance.
The U.S. Department of Justice is investigating whether Nvidia's $20 billion licensing deal with AI startup Groq was structured to bypass antitrust review.