Nvidia rises as Mizuho ups price target ahead of earnings on AI strength

Nvidia (NASDAQ:NVDA) shares rose 2.7% in early trading on Tuesday as Mizuho upped its price target on the semiconductor giant, citing continued strength in the artificial intelligence accelerator market ahead of its quarterly results.

Nvidia should report in-line guidance for the January quarter, which would set itself up for a “strong” 2025, analyst Vijay Rakesh said, noting that GB200 ramping in NVL72 and GB300 should benefit the company in the back half of the year. Additionally, the company’s opportunities in the sovereign market are likely to start ramping next year and account for roughly $10B in sales, or approximately 9% to 11% of data center revenues, Rakesh added.

Lastly, the AI server market is now a total addressable market of $400B or more and could grow more than 60% between 2023 and 2027, with competitor AMD (AMD) expecting a $500B market by 2028, Raskesh pointed out.

As such, he upped his price target on Nvidia to $165 from $140 and reiterated his Outperform rating on the Jensen Huang-led company.

Nvidia is set to report quarterly results after the close of trading on November 20. A consensus of analysts expects the company will earn $0.74 per share on $32.93B in revenue.