NVIDIA Corporation (NASDAQ: NVDA) stock surged over 4% on Thursday following a bullish price forecast from Mizuho.
Mizuho Securities has revised its outlook on NVIDIA Corporation (NVDA), raising the share price target from $850 to $1,000. However, the firm has reaffirmed its “Buy” rating on the stock due to its strong position in the growing AI sector, a trend expected to continue through 2024 and 2025.
According to the report, NVIDIA stands to witness significant revenue expansion in the data center (DC) segment, with forecasts projecting approximately $89 billion by 2024. This trajectory could further escalate, with AI data center revenues estimated to soar to around $280 billion by 2027. NVIDIA’s product lineup, featuring GH200, B100, and B200, is poised to drive this growth.
Mizuho also shed light on the performance of NVIDIA’s rivals within the AI arena. Advanced Micro Devices (NASDAQ: AMD) is the second-largest contender in the AI GPU market, albeit trailing behind NVIDIA. Projections suggest AMD’s AI revenue in 2024 could climb to between $4 and $5 billion, compared to current estimates of $3.5 billion, with a potential surge to around $18 billion by 2027.
Furthermore, Broadcom Inc. (NASDAQ: AVGO) will capitalize on the burgeoning AI market expansion. Mizuho foresees Broadcom’s AI revenues escalating from an estimated $8 billion in 2024 to as high as $20 billion by 2027. Broadcom’s strategic focus on ramping up custom silicon solutions for clients will drive this growth, positioning the company favorably in what’s described as the new AI arms race.
NVIDIA (NASDAQ: NVDA) Stock Performance
NVDA stock jumped 4.47% to close at $926.69 on Thursday. The traders had exchanged hands with 59,012,572 (59.01 million) shares compared to the average daily trading volume of 47.27 million.
