NVIDIA is about to announce its earnings, and Mizuho has raised its target price to $165

Zhitong
2024.11.13 06:31
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Mizuho raised NVIDIA's target price from $140 to $165 and reiterated its "Outperform" rating, as the artificial intelligence accelerator market continues to strengthen. NVIDIA will announce its quarterly results on November 21, with expected revenue of $32.93 billion and earnings per share of $0.74. Analysts pointed out that the growth of NVIDIA's GB200 NVL72 and GB 300 will drive performance in the second half of the year, and sovereign market opportunities are expected to increase next year, with sales of approximately $10 billion. The potential of the artificial intelligence server market is enormous, with an expected growth of over 60% from 2023 to 2027

According to Zhitong Finance, Mizuho has raised the target price for NVIDIA (NVDA.US) from $140 to $165 and reiterated its "outperform" rating, citing the continued strength of the artificial intelligence accelerator market ahead of its quarterly earnings announcement. NVIDIA is set to release its latest quarterly results on the morning of November 21, Beijing time. Analysts generally expect the company to report revenue of $32.93 billion and earnings per share of $0.74.

Mizuho analyst Vijay Rakesh stated that NVIDIA is expected to provide guidance for the January quarter, which will lay the foundation for its "strong" growth in 2025. He noted that the growth of NVIDIA's GB200 NVL72 and GB 300 will benefit the company in the second half of this year. Additionally, Rakesh added that the company's opportunities in the sovereign market may begin to increase next year, with sales expected to be around $10 billion, accounting for approximately 9% to 11% of data center revenue.

Finally, Rakesh pointed out that the artificial intelligence server market is now a potential market of $400 billion or more and could grow by over 60% between 2023 and 2027, with competitor AMD (AMD.US) expected to reach a market size of $500 billion by 2028