Rick Wilking/Reuters
- Mizuho analyst Vijay Rakesh said Nvidia's share price has another 20% upside to run on the AI boom.
- He added the chipmaker could generate $300 billion in AI-specific revenue by 2027.
- The stock has already doubled so far this year and is trading around $446 apiece.
Chipmaker Nvidia's having a great year with its stock price doubling amid the artificial intelligence, or AI hype — and it could get even better.
Mizuho analyst Vijay Rakesh has given Nvidia's stock price another 20% upside to run — and even this new target of $530 is "conservative," according to a Sunday client note seen by Insider. Rakesh's previous price target for Nvidia was $400.
Nvidia shares closed 0.7% higher at $446.12 apiece on Monday. The stock has surged 205% so far this year.
He also expects Nvidia to maintain its dominant position in AI chips till at least 2027. The company could generate around $300 billion in AI-specific revenue by 2027 with a 75% market share of AI server units, Rakesh added. That's 10 times his projection of $25 billion to $30 billion in AI revenues this year, he told Dow Jones on Monday.
"With demand for generative AI accelerating, we see significant opportunities for hardware suppliers powering the higher compute needs for large-language models, particularly AI powerhouse NVDA," Rakesh wrote, referring to the Santa Clara-based chipmaker by its stock symbol.
Rakesh's endorsement of Nvidia followed the company's blockbuster first-quarter results from the generative artificial intelligence boom that was posted in May.
Nvidia posted first-quarter revenue of $7.2 billion — beating Wall Street forecasts. The company didn't provide information about how much revenue it generated from AI-specific businesses.
Consequently, Nvidia CEO Jensen Huang's wealth has also nearly doubled this year, per Bloomberg Billionaires Index. He is now the 32nd richest person in the world with a net worth of $40 billion — up 189% so far this year.
Huang owns 86.9 million Nvidia shares, or about 3.5% of the Santa Clara-based chipmaker, per the company's 2023 annual report.
Mizuho's Rakesh is not the only analyst bullish on Nvidia. In June, Morgan Stanley called Nvidia its "top pick" on the back of demand for its AI chips.