On Friday, Mizuho Securities showed a positive outlook on NVIDIA Corporation (NASDAQ:NVDA), with analyst Vijay Rakesh raising the price target to $168.00 while maintaining an Outperform rating. The adjustment comes as the company anticipates its earnings report in 12 days, with expectations for a mixed near-term performance but a solid second half of the year. According to InvestingPro data, NVIDIA maintains excellent financial health with a perfect Piotroski Score of 9, demonstrating strong operational efficiency and financial stability.
Rakesh’s analysis suggests that NVIDIA’s earnings for the April and July quarters could outperform with high sales of H20, despite potential setbacks including weaker GB200 sales and an earnings per share impact from a write-down totaling $5.5 billion associated with H20. The July quarter revenue forecasts for NVIDIA are set at $46.6 billion total and $42.5 billion for the Data Center, with the analyst predicting around a $3 billion headwind due to H20 wind-downs. The expected ramp-up of GB200 with improved testing capacity offsets these concerns. InvestingPro data shows impressive revenue growth of 114.2% over the last twelve months, with analysts forecasting continued strong growth of 53% for the next fiscal year.
Looking further ahead, the October and January quarters are projected to be strong for NVIDIA. The analyst anticipates significant growth as the GB200 NVL72 ramps up, along with shipments of GB200/300 HGX. The GB300 NVL72 is expected to see more of a ramp in the first half of 2026. Additionally, NVIDIA’s prospects in China are promising, with the Ascend 910a/b/c units projected to exceed 700,000 in 2025, despite currently low yield rates at the key foundry SMIC, estimated at around 30%.
NVIDIA’s stock price movement will be closely watched as these projections unfold, with the company’s earnings report being a key indicator of its near-term financial health and its potential to meet the optimistic expectations for the latter part of the year. The raised price target by Mizuho reflects confidence in NVIDIA’s product pipeline and market strategy moving forward.
In other recent news, NVIDIA has entered into a significant partnership with Saudi Arabia to develop AI and digital infrastructure, a move announced during President Donald Trump’s visit to the country. This collaboration aims to transform Saudi Arabia into a global hub for AI, cloud computing, and robotics, with plans to build AI factories powered by NVIDIA’s advanced GPUs. The partnership involves constructing facilities with a capacity of up to 500 megawatts and deploying thousands of GPUs for smart city solutions. Meanwhile, HSBC has maintained a Hold rating on NVIDIA, with a price target of $120, as the company approaches its first-quarter results. Analyst Frank Lee projects NVIDIA’s sales to align with consensus estimates, though he notes potential challenges from licensing restrictions in China.
Additionally, NVIDIA’s shares have shown gains following a deal with Saudi Arabian AI firm Humain, which is part of a broader wave of tech investments during President Trump’s Middle East visit. This deal is expected to support a substantial data center project. In other developments, Tesla (NASDAQ:TSLA) and other tech stocks in the Magnificent Seven group experienced varied movements, with Tesla and Alphabet (NASDAQ:GOOGL) shares rebounding after a previous downturn. The group had faced a collective decline in premarket trading, influenced by global events and market sentiment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.