Nvidia CEO Jensen Huang. I-Hwa Cheng/AFP/Getty Images
Mizuho said Nvidia's next earnings report will be the next big catalyst for AI stocks.
Demand for Nvidia's GPU chips remains strong despite possible delays to the Blackwell chips, the bank said.
Mizuho raised its price target on Nvidia to $132, indicating a 26% upside potential from Thursday's closing price.
According to Mizuho, NVIDIA's shares have fallen nearly 20% over the past month, but investors see significant upside potential and the company's upcoming earnings report will be a big boost for AI-related stocks.
The bank said in a note this week that investors should ignore noise about potential delays to Nvidia's next-generation Blackwell chips, arguing that demand for the company's GPU chips remains relentless.
Mizuho said Nvidia's production capacity for its current-generation H100 and H200 chips remains “tight” and that Blackwell's delays would not affect demand and would only delay the company's revenue by about two to three months.
“Demand has not changed and NVDA continues to lead the way,” said Mizuho managing director Vijay Rakesh.
The bank raised its price target on Nvidia to $132 from $127.50, indicating a potential upside of 26% from Thursday's closing price.
Perhaps most important is Nvidia's ability to raise prices for its next-generation chips, which should increase the average selling price of AI-enabled GPUs, Rakesh said.
Mizuho said Nvidia's Blackwell NVL72 GPU racks could cost more than $3 million, while the GB200 superchips could cost between $50,000 and $70,000 each.
This is a big jump from Nvidia's H100 chip, which costs about $40,000, and its H100/B100 GPU racks, which cost about $300,000 to $400,000, according to the bank.
These big price increases should continue to benefit Nvidia beyond 2025, with Mizuho planning to raise its profit forecasts for 2026 and 2027, when the company releases its next-generation Rubin-based GPU chips.
Mizuho expects Nvidia's sales to reach nearly $200 billion by 2027, more than triple the $61 billion it generated in 2024.
“We continue to see NVDA as the winner in the AI GPU space, with AMD in second place,” Rakesh said. “NVDA will report earnings on August 28th, which we see as the next big catalyst for AI stocks.”
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