Lisa Cook sues Trump over firing attempt, emergency hearing set
Investing.com - Mizuho has reiterated its Outperform rating for Nvidia (NASDAQ:NVDA) with a price target of $205.00. The company, currently valued at $4.43 trillion, is trading near its 52-week high with a P/E ratio of 57.8x, according to InvestingPro data.
The investment firm expects Nvidia to maintain its dominant position in AI training and inference chips for data center applications, where it currently holds an estimated market share exceeding 95%. This market segment is projected to grow at approximately 60% CAGR, potentially reaching over $500 billion by 2028. The company’s impressive 86.2% revenue growth and 70.1% gross profit margin in the last twelve months validate its market leadership position.
Mizuho notes that Nvidia’s gaming GPUs, which command an estimated 75% share of the PC market, are expected to remain healthy and stable. The firm also highlights Nvidia’s strong automotive Advanced Driver Assistance Systems (ADAS) pipeline as a positive factor. InvestingPro subscribers have access to 20+ additional exclusive insights about Nvidia’s financial health and market position.
The research firm believes Nvidia is successfully executing its product roadmap, with GB200 and NVL72/36 chips scheduled to ramp up in 2025, while also increasing its AI server content through the Grace CPU. Mizuho suggests that headwinds from China’s AI chip restrictions remain muted for the company.
Mizuho also identifies a potential upgrade cycle opportunity for Nvidia’s RTX 50-series, noting that RTX 40-series penetration remains at approximately 10% of the PC market, which could help Nvidia achieve a gaming revenue run rate of around $16 billion per year.
In other recent news, Nvidia reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share of $1.04 compared to the forecast of $1.01. The company also exceeded revenue expectations, achieving $46.7 billion against the anticipated $46.1 billion. Despite strong overall results, Nvidia’s data center revenue was slightly lower than expected, with some concerns about its ability to sell H200 chips into China. Analysts have responded to these developments with various price target adjustments. KeyBanc raised its price target to $230, citing strong guidance, while Truist Securities increased its target to $228 based on AI growth. Piper Sandler maintained its $225 target, highlighting Nvidia’s October quarter revenue guidance of $54 billion, which exceeded market expectations. DA Davidson also raised its price target to $195, noting long-term AI demand but maintaining a Neutral rating. These updates reflect a mix of optimism and caution among analysts regarding Nvidia’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.