Nvidia’s Bright Future: Mizuho Raises Price Target Ahead of Earnings Report
Nvidia, a leading player in the AI GPU space, has been making headlines recently with its upcoming earnings report set to be a major catalyst for AI-related stocks. Despite a recent 20% dip in Nvidia’s stock price, Mizuho is bullish on the company’s future and has raised its price target to $132, indicating a potential 26% upside from Thursday’s close.
Mizuho analyst, Vijay Rakesh, believes that investors should not be deterred by rumors of potential delays in Nvidia’s Blackwell chip. The bank points out that demand for Nvidia’s GPU chips remains strong, with its current generation H100 and H200 chips experiencing tight capacity. Any delays in the release of Blackwell are not expected to impact demand, but rather delay revenue for the company by a couple of months.
One key driver for Nvidia’s future growth is its ability to raise prices on its next-generation chips. Mizuho estimates that the cost of Nvidia’s Blackwell NVL72 GPU rack could be as high as $3 million, while its GB200 superchips could range from $50,000 to $70,000 each. These price increases are expected to boost the average selling price of Nvidia’s AI-enabled GPUs, providing a significant tailwind for the company beyond 2025.
Looking ahead, Mizuho projects that Nvidia could generate nearly $200 billion in revenue by 2027, more than triple the $61 billion it generated in 2024. Rakesh emphasizes that Nvidia remains the top player in the AI GPU space, with AMD coming in as the second player. Investors are encouraged to keep an eye out for Nvidia’s earnings report on August 28th, as it is expected to be a major catalyst for AI-related stocks.
In conclusion, while Nvidia’s stock may have experienced a recent downturn, Mizuho’s optimism about the company’s future growth potential is certainly compelling. With its strong position in the AI GPU market and a promising lineup of next-generation chips, Nvidia appears poised for continued success in the years to come. Stay tuned for more updates on Nvidia and other AI-related stocks on Extreme Investor Network.