Nvidia stock price target raised to $185 from $170 at Mizuho on strong data center outlook

Published 02/07/2025, 22:00
© Reuters.

Investing.com - Mizuho (NYSE:MFG) raised its price target on Nvidia (NASDAQ:NVDA) to $185 from $170 on Wednesday, while maintaining an Outperform rating on the chipmaker’s stock. The stock, currently trading at $157.25 and near its 52-week high of $158.71, has demonstrated strong momentum with a 25% return over the past year. According to InvestingPro, Nvidia maintains an EXCELLENT financial health score of 3.88.

The investment firm kept its July quarter revenue and earnings per share estimates unchanged at $45.0 billion and $0.98, respectively, with data center revenues projected at approximately $41 billion, representing a 5% quarter-over-quarter increase.

Mizuho raised its fiscal 2026 estimates from $195 billion in revenue and $4.16 in earnings per share to $202 billion and $4.38, citing modestly improved GPU supply and the earlier-than-expected introduction of GB300 and air-cooled Rubin products as tailwinds.

The firm’s updated price target represents 32.7 times its fiscal 2027 price-to-earnings estimate, up from the previous multiple of 32.0 times, as it anticipates strong demand for GB200 products in the second half of 2025 ahead of GB300 ramps.

Mizuho noted that Nvidia is working on a new "B40" accelerator for the Chinese market, though shipments are currently blocked, while the Rubin product line is expected to drive additional growth into 2026.

In other recent news, Nvidia’s earnings estimates for the calendar year 2026 have seen a 10% increase since the start of the year, signaling growing analyst confidence in the company’s future performance. Cantor Fitzgerald has reiterated its Overweight rating on Nvidia, setting a price target of $200, indicating a bullish outlook. Meanwhile, Nvidia’s collaboration with Cyngn has drawn attention, as Cyngn’s stock surged 130% following a mention in a Nvidia blog post. Cyngn is utilizing Nvidia’s Isaac platform to develop autonomous solutions for industrial applications. Northrop Grumman (NYSE:NOC) is also expanding its use of Nvidia technology to enhance AI capabilities for space applications, aiming to improve spacecraft operations. Additionally, SandboxAQ, an AI startup, has released a large dataset using Nvidia chips to accelerate drug discovery, focusing on predicting drug-protein binding. These developments highlight Nvidia’s expanding influence across various industries.

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