NVIDIA stock could hit $769 on ~$300 billion AI opportunity by 2027 - Mizuho
Investing.com | Author Senad Karaahmetovic
Published Jul 24, 2023 05:29AM ET
NVIDIA (NVDA) stock could hit $769 on ~$300 billion AI opportunity by 2027 - Mizuho
Mizuho analysts conducted a deep-dive analysis of the broader server landscape and broader AI outlook amid expectations that GenAI (generative AI) will continue to drive demand.
They see “a significant opportunity for GPU supplier NVDA” with the TAM (total addressable market) expanding 10 times over the next 5 years to more than $400 billion.
“We see AI server unit penetration reaching ~11% by C27E, and NVDA, with conservative ~75% share (vs. 90%+ today), potentially driving ~$300B in AI-specific revenue,” they said in a client note.
Advanced Micro Devices (NASDAQ:AMD) is expected to have a ~5% of AI server share by 2027. The analysts also highlighted Amazon’s (NASDAQ:AMZN) Dojo , or Alphabet’s (NASDAQ:GOOGL) Google that could capture AI market share gains.
“We see more room to unlock value with solid AI roadmaps accelerating.”
Despite robust YTD gains in Nvidia (NASDAQ:NVDA) stock, Mizuho sees room for this rally to continue.
“Assuming $30-100B AI revenues (or ~$65B at the midpoint), we estimate implied share price to reflect AI estimates for C23-25E would be $490-$769/share, and a midpoint at ~$625 PT,” the analysts concluded.
The $769/share price implies Nvidia’s market cap at ~$1.9 trillion.
Mizuho’s current price target on NVDA stock is $530 per share.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.