Analyst Forecasts Nvidia’s Continued AI Dominance

According to Mizuho analyst Vijay Rakesh, Nvidia Corporation is positioned to maintain its stronghold in the artificial intelligence (AI) market and has the potential to unlock a staggering $300 billion in AI-related revenue by 2027. Despite Nvidia’s stock already surging by 200% this year, Rakesh remains highly optimistic about the company’s future prospects, boosting his price target on the stock to $530, implying further upside.

Rakesh emphasized Nvidia’s dominant position. He believes that even as competition intensifies in the future, Nvidia will hold a substantial share of the market. Rakesh’s estimates project that Nvidia’s AI revenue opportunity for this year could range between $25 billion to $30 billion. This projection is based on the assumption that the company will ship approximately 100,000 AI units at average selling prices of $250,000 to $300,000.

Looking ahead to 2027, Rakesh envisions a massive surge in AI server unit sales, potentially reaching 1.5 million units. Although average selling prices may decline to around $200,000 during that time, the increased sales volume is expected to fuel substantial growth in Nvidia’s AI business.

While Nvidia’s stock has seen remarkable growth, Rakesh asserts that the potential for the company’s AI value is far from fully realized. He believes there is still significant untapped potential, which could add between $20 to $300 per share in incremental AI value. This, in turn, could result in Nvidia’s stock being valued between approximately $486 to $760 per share, reaffirming Rakesh’s buy rating on the company’s stock.

Rakesh also raised the price target on Intel Corporation shares to $33 from $30, acknowledging the potential for some revenue growth from the AI sector. However, he noted that the growth for Intel may be more subdued compared to competitors like Nvidia and AMD. The analyst maintained his buy rating and $140 price target on AMD shares, indicating his positive outlook for the company’s future performance in the semiconductor market.