Analysts Remain Bullish on NVDA Stock
Despite what appears to be a deteriorating geopolitical environment, analysts seem to remain broadly bullish on NVDA stock. That’s mainly because Nvidia remains the primary beneficiary of AI’s rapid expansion. In July, Mizuho Securities analyst Vijay Rakesh predicted Nvidia’s AI revenue will reach $300 billion by 2027. This projection relies on maintaining a 75% market share in AI server chips.
He maintains that AI demand remains robust, counterbalancing the restrictions’ short-term effects. Anticipating NVDA to recover from product sales losses with global solid market for A100/H100 and a substantial AI backlog in the next year. Nevertheless, based on his calculations, he envisions more significant challenges in the long run, considering that China makes up around 20% of AI market demand.
Additionally, KeyBanc analyst John Vinh, maintaining a Buy rating on Nvidia with a $750 price target (about 71% upside), views the new restrictions unfavorably. He foresees minimal short-term impact as Nvidia can shift demand globally but acknowledges the challenge of replacing China’s 20-25% data center revenue. A 20% impact on his $101 billion revenue estimate for Fiscal 2025 implies a potential $20 billion revenue loss and a $5 earnings per share decrease. However, over the long term, the growth story remains intact, and analysts continue to push out higher and higher price targets. $NVIDIA(NVDA.US$ $Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US$
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