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Mizuho raises NVIDIA target to $1,275 on AI hardware dominance

EditorFrank DeMatteo
Published 2024-06-04, 08:06 a/m
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On Tuesday, Mizuho Securities increased its price target for NVIDIA Corporation (NASDAQ:NVDA), a leading manufacturer of graphics processing units, from $1,180 to $1,275. The firm has reiterated its Buy rating on the stock. The adjustment comes amid expectations of strong performance from NVIDIA's Hopper platform and Blackwell B100/200 products, slated for release between the third quarter of 2024 and the first quarter of 2025. Additionally, the company's anticipated rollout of the 3nm/Rubin technology at Computex for 2026 is seen as a further growth catalyst.

NVIDIA is also expected to gain traction with its B200 NVL36/72 full rack solutions, developed in partnership with Wistron. These solutions, with their substantial price range of $1.5 to $3 million, are projected to contribute significantly to earnings as they ramp up in the first half of 2025. The firm believes that these developments will bolster NVIDIA's earnings and solidify its position in the AI hardware market.

Moreover, the upcoming 10-for-1 stock split scheduled for June 7 is anticipated to make NVIDIA shares more accessible to retail investors, potentially providing additional momentum for the stock. Mizuho's analysis suggests that the split could lead to further benefits for NVIDIA's share performance.

In the broader context of the industry, NVIDIA's strong roadmap is positioned against notable advancements from competitors such as AMD (NASDAQ:AMD), which is expected to introduce new products including the MI325/350/400. These new offerings from AMD are set to enhance Inference performance by up to 35 times compared to the MI300 and will incorporate HBM4 technology. Meanwhile, Intel (NASDAQ:INTC)'s latest developments were expected to be unveiled at their Computex keynote.

The increased price target reflects Mizuho's confidence in NVIDIA's continued leadership in the AI hardware landscape and its ability to capitalize on emerging opportunities within the sector.

In other recent news, NVIDIA Corporation has been the subject of several important developments. The company's CEO, Jensen Huang, recently delivered a keynote at Computex, highlighting the rapid pace of innovation in artificial intelligence (AI) and the company's central role in the sector. Itau BBA reaffirmed its Outperform rating on NVIDIA shares, setting a bullish price target of $1,000.00, while Goldman Sachs (NYSE:GS) maintained its Conviction Buy rating with a price target of $1,200.00. Wells Fargo (NYSE:WFC) also retained its Overweight rating on the company, with a price target of $1,250.00.

NVIDIA's recent advancements in AI were further underscored by the company's significant market cap gain in May, which was largely attributed to a robust revenue forecast for AI-driven chips. In addition, the company announced plans for a stock split, which stirred investor excitement.

The company also revealed its future hardware roadmap, including the launch of the Blackwell Ultra with 12H HBM3E memory in 2025, and the Rubin Platform launching in 2026. The DRIVE platform developed for automotive applications is also expected to launch with Mercedes in 2025 and Jaguar-Land Rover in 2026. These developments reflect NVIDIA's ongoing success in the accelerated computing sector and its strategic position in the rapidly evolving landscape of AI and related technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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