Nvidia (NVDA) is advancing 2.5% after the tech giant announced yesterday that it was widening its alliance with Cisco (CSCO). Also importantly, NVDA is slated to unveil its fiscal fourth-quarter earnings today after the market closes.

Ahead of the company's results, investment bank Cantor Fitzgerald remained bullish on its longer-term outlook.

NVDA's Enhanced Alliance With Cisco

The two companies disclosed that they will utilize more of each others' technology going forward. Their partnership seeks to make it easier for firms to utilize AI by facilitating the enhancements of their data centers.

Under the extended deal, NVDA will increase the competitiveness of its networking offerings by including Cisco's chips in it. The chips will increase the functionality of NVDA's offerings, according to the companies.

Nvidia also uses the partnership, which launched a year ago, to sell its own chips to Cisco's customers.

Cantor Fitzgerald Kept a $200 Price Target on NVDA Ahead of Its Q4 Results

In a note to investors on Monday, the investment bank maintained a $200 price target and an Overweight rating on NVDA.

Cantor Fitzgerald noted that the chip maker typically surpasses its quarterly revenue guidance by about $2 billion, while its sales usually rise by $2 billion to $2.5 billion each quarter. On the other hand, this performance has led to elevated expectations, and Cantor believes that the company may not raise its guidance much above analysts' average outlook later today.

The investment bank thinks that the stock may break out of its current range when NVDA reports its fiscal Q1 results, since its new Blackwell chip is slated to be fully launched around that time.

While we acknowledge the potential of NVDA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.