Mizuho raises Nvidia stock price target to $225 on AI leadership position

Investing.com - Mizuho has raised its price target on Nvidia (NASDAQ:NVDA) to $225.00 from $205.00 while maintaining an Outperform rating on the stock. The semiconductor giant, currently valued at $4.45 trillion, has demonstrated remarkable growth with revenue surging 71.55% over the last twelve months.

The price target increase, announced Monday, reflects Mizuho’s continued confidence in Nvidia’s position as a leader in the artificial intelligence market. According to InvestingPro analysis, the company maintains excellent financial health with strong profitability metrics, though it currently trades above its Fair Value.

Mizuho analyst Vijay Rakesh noted that Nvidia is well-positioned in the AI space, with the firm projecting more than $300 billion in AI data center revenue for the company by 2028.

The analyst also observed that "Neocloud budgets" are "increasingly strained by Rubin/Instinct pricing as customers sharpen focus on ROI," suggesting competitive pricing pressures in the market.

Mizuho identified both Broadcom and Nvidia as "best-positioned" in the current market, while also noting that AMD’s OpenAI deal suggests "upside potential" for that competitor.

In other recent news, Nvidia has been at the center of several significant developments. The U.S. Commerce Department is investigating Megaspeed, a Singaporean firm connected to Nvidia CEO Jensen Huang, for potentially aiding Chinese companies in bypassing American export controls. Meanwhile, Cantor Fitzgerald has increased its price target for Nvidia to $300, maintaining an Overweight rating, following discussions with Nvidia’s executives about their AI infrastructure plans. Hoth Therapeutics has expanded its artificial intelligence initiative by acquiring an NVIDIA AI Enterprise subscription license, enhancing its capabilities in drug development and predictive analytics. Additionally, PubMatic has reported a fivefold increase in ad processing speed due to its technical collaboration with Nvidia, resulting in substantial reductions in auction timeouts. IREN Limited has also announced new AI cloud contracts involving Nvidia’s Blackwell GPU deployments, which are projected to generate $225 million in annualized revenue. These recent developments highlight Nvidia’s ongoing influence and partnerships across various sectors.

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