Nvidia’s share price has more than doubled since the start of the year, largely on the back of strong demand for its artificial intelligence (AI) technology. According to Mizuho analyst Vijay Rakesh, Nvidia’s share price still has huge growth potential, with a 20% gain forecast. As a result, Rakesh has raised his price target for Nvidia to $530, up 32.5% from his previous target of $400. The analyst even described the new price target as “conservative,” indicating his belief in the company’s potential.
Rakesh believes that Nvidia’s dominance in the AI processor industry will be unrivaled until at least 2027. By then, he expects the company to generate a significant $300 billion in revenue from its AI-related businesses, effectively cornering 75% of the AI server market. This forecast revenue is ten times higher than his expectation for Nvidia’s AI revenue this year, which is expected to be between $25 billion and $30 billion.
In his research, Rakesh highlighted the potential for hardware vendors, particularly Nvidia, to capture significant opportunities as the demand for generative AI continues to grow. The need for more processing power, particularly for large language models, creates a huge opportunity for AI giant Nvidia.
Nvidia’s first-quarter results, released in May, showed impressive progress in generative AI. The company’s revenue for the quarter beat Wall Street estimates, reaching a staggering $7.2 billion. However, specific revenue data for Nvidia’s AI-related companies was not disclosed.
The rise in Nvidia’s share price has significantly boosted Jensen Huang’s fortune. Huang is now the 32nd richest person in the world, with a net worth of $40 billion, according to the Bloomberg Billionaires Index. He owns 86.9 million Nvidia shares, or 3.5% of the company’s total.
Mizuho analyst Vijay Rakesh’s confidence in Nvidia is not unique. Morgan Stanley is also positive, naming Nvidia a “top pick” in June on the back of robust demand for its AI processors. These positive estimates and awards confirm Nvidia’s position as a leader in the AI chip business, with plenty of room for future development and success.
