Nvidia Stock Price Outlook: Mizuho Bumps up Price Target Ahead of Earnings

In Trading by 0 Comments

However, considering the catalysts ahead, there is a good chance that shares of Nvidia could continue heading higher over the next five years, even if those gains may not be as astronomical as those of the past five. The average analyst rating for NVIDIA stock from 41 stock analysts is “Strong Buy”. This means that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.

Analyst Price Targets (

A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month.

NVDA stock forecasts by analyst

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

  1. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
  2. Of the 40 recommendations deriving the current ABR, 35 are Strong Buy and two are Buy.
  3. This calculation should be considered rough, or back-of-the-envelope.
  4. Shares of the artificial intelligence (AI) technology giant have gained 121% so far this year through May 31.

Financial Calendars

This calculation should be considered rough, or back-of-the-envelope. Much could happen in a year with Nvidia, the competitive environment, and the macroeconomic environment. What I do feel highly confident about, however, is that Nvidia stock will outperform the market over the next year.

Nvidia should be a big beneficiary of this growth considering that it controlled an impressive 88% of the market for PC graphics cards in the first quarter of 2024. The data center AI chip market’s growth revved up big time starting in early 2023 due to demand for technology that enables generative AI. Nvidia (NVDA 5.26%) stock has been a fantastic performer over the short and long terms. Shares of the artificial intelligence (AI) technology giant have gained 121% so far this year through May 31. Over the last decade, shares have returned 24,140%, which has transformed a $1,000 investment into more than $242,000. These gains have crushed the market, as the S&P 500 index returned 11.3% and 230%, respectively, over these periods.

Stock Ideas and Recommendations

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.03% per year. These returns cover a period from January 1, 1988 through July 1, 2024. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Nvidia has other potential growth drivers that could contribute to the expansion of its top line.

The Motley Fool has positions in and recommends Advanced Micro Devices, Cadence Design Systems, and Nvidia. Omniverse-powered digital twins enable Wistron, one of our manufacturing partners, to reduce end-to-end production cycle times by 50% and defect rates by 40%. And BYD, the world’s largest electric vehicle maker, is adopting Omniverse for virtual factory planning and retail configurations. By 2027, Mizuho expects Nvidia to generate nearly $200 billion in revenue, more than triple the $61 billion it generated in 2024.

Nvidia stock is down nearly 20% over the past month, but there’s big upside ahead for investors and its upcoming earnings report will be a major catalyst for AI stocks, according to Mizuho. Meanwhile, in the first quarter of its fiscal 2025, growing demand for digital twin systems drove revenue in Nvidia’s professional visualization business up by 45% year over year to $427 million. Now, it would seem far-fetched to expect Nvidia stock to rise another 30x over the next half-decade considering that it has a market cap of just over $3 trillion right now and is one of the three largest companies in the world. The entire global economy, for comparison, was worth an estimated $105 trillion in 2023.

44 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for NVIDIA in the last year. There are currently 4 hold ratings, 39 buy ratings and 1 strong buy rating for the stock. The consensus among Wall Street equities research analysts is that investors should “moderate buy” NVDA shares.

For Nvidia’s Blackwell NVL72 GPU rack, the cost could be upwards of $3 million, while its GB200 superchips could cost somewhere between $50,000 and $70,000 each, according to Mizuho. Upgrade to MarketBeat All Access to add more stocks to your watchlist. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s.

Sign-up to receive the latest news and ratings for NVDA and its competitors with MarketBeat’s FREE daily newsletter. Of the 40 recommendations deriving the current ABR, 35 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 87.5% and 5% of all recommendations.

Given this dynamic, it makes sense to me to increase Wall Street’s earnings estimates to develop a price target. Of course, we don’t know by how much analysts will be off in the future. So, the best we can probably do is to assume they’ll be off by about 17% over the next year, just as they were over the past year. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

In fact, analysts are forecasting that its top line will triple in the space of just three fiscal years (from fiscal 2024 levels of $60.9 billion). For Nvidia’s fiscal 2024, which ended Jan. 28, its revenue stood at $60.9 billion, up from $11.7 billion in its fiscal 2019. So, Nvidia’s top line has increased fivefold over the last five years. Looking ahead, analysts are forecasting something similar may happen thanks to the massive growth driver that is the artificial intelligence (AI) market. Analysts like NVIDIA more than other “computer and technology” companies.

According to the research reports of 44 Wall Street equities research analysts, the average twelve-month stock price forecast for NVIDIA is $131.31, with a high forecast of $200.00 and a low forecast of $62.00. Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties. The ABR is the calculated average of the actual recommendations (strong buy, hold, sell etc) made by the brokerage firms for a given stock.

(Inferencing involves deploying or running an AI application.) It’s widely estimated that Nvidia’s GPUs have more than a 90% share of the data center GPU AI chip market, and at least an 80% share of the overall data center AI chip market. The bank said said in a note this week that investors should ignore the noise related to potential delays of Nvidia’s next-generation Blackwell chip, arguing that it is still seeing relentless demand for its GPU chips. According to analysts, NVIDIA’s stock has a predicted upside of 23.79% based on their 12-month stock forecasts. Nvidia currently has an average brokerage recommendation (ABR) of 1.20 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 40 brokerage firms.

One reason why that forecast may be accurate is that the market for AI chips is expected to reach a whopping $400 billion in annual revenue in 2027 (which would be fiscal 2028 for Nvidia), according to Nvidia’s peer AMD. Mizuho’s Nvidia revenue estimate for calendar 2027 (fiscal 2028 for Nvidia) suggests that it would be controlling 70% of the AI chip market at that time. Though that would be lower than the 90%-plus share that the company currently commands in this market, it would still be able to deliver a massive bump in revenue considering the potential size of the AI chip market after four fiscal years.

The consensus rating score for NVIDIA is 2.93 while the average consensus rating score for “computer and technology” companies is 2.62. Assuming Nvidia does hit $184.5 billion in revenue in fiscal 2027, its top line would have increased at a compound annual rate of 45%. If the semiconductor giant’s growth tapers off in the two that follow years to, let’s say 25% a year, its revenue could reach $288 billion after five years. That would be close to a 5x increase in its revenue from fiscal 2024, and would be almost equivalent to the growth clocked by the company in the past five years.

Leave a Comment