Nvidia is rising due to Mizuho raising its target price ahead of earnings, thanks to the strength in AI.
Nvidia (NASDAQ: NVDA) stock rose 2.7% in early Tuesday trading, Mizuho raised the target price for the semiconductor giant, citing continued strength in the artificial intelligence accelerator market ahead of the quarterly earnings.
Analyst Vijay Rakesh stated that Nvidia should report inline guidance for the January quarter and that 2025 would be "strong," highlighting the sharp increase in NVL72 and GB300 to GB200, which should benefit the company in the latter half of this year. Furthermore, Rakesh added that the company's opportunities in the sovereign market are expected to sharply increase from next year, accounting for around 10 billion dollars in revenue, or about 9% to 11% of datacenter earnings.
Finally, the AI server market is currently a total addressable market of over 400 billion dollars, with the potential to grow by over 60% between 2023 and 2027. Competitor AMD forecasts a market of 500 billion dollars by 2028, as noted by Rakesh.
Therefore, he raised Nvidia's target price from 140 dollars to 165 dollars, reiterating an Outperform rating for the company led by Jensen Huang.
Nvidia is scheduled to report quarterly earnings after the close of trading on November 20th. Analyst consensus expects the company to earn $0.74 per share on revenue of 32.93 billion dollars.
Analyst Vijay Rakesh stated that Nvidia should report inline guidance for the January quarter and that 2025 would be "strong," highlighting the sharp increase in NVL72 and GB300 to GB200, which should benefit the company in the latter half of this year. Furthermore, Rakesh added that the company's opportunities in the sovereign market are expected to sharply increase from next year, accounting for around 10 billion dollars in revenue, or about 9% to 11% of datacenter earnings.
Finally, the AI server market is currently a total addressable market of over 400 billion dollars, with the potential to grow by over 60% between 2023 and 2027. Competitor AMD forecasts a market of 500 billion dollars by 2028, as noted by Rakesh.
Therefore, he raised Nvidia's target price from 140 dollars to 165 dollars, reiterating an Outperform rating for the company led by Jensen Huang.
Nvidia is scheduled to report quarterly earnings after the close of trading on November 20th. Analyst consensus expects the company to earn $0.74 per share on revenue of 32.93 billion dollars.
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