Nvidia’s Stock Price Could Surge 20% More, Mizuho Analyst Predicts
Chipmaker Nvidia has seen its stock price soar this year, doubling amid the hype surrounding artificial intelligence (AI). Now, according to Mizuho analyst Vijay Rakesh, the company’s stock price could have another 20% upside. Rakesh’s new target of $530 is considered conservative but still represents a significant increase from his previous price target of $400.
On Monday, Nvidia shares closed at $446.12 apiece, showing a 0.7% increase. Thus far in 2021, the stock has surged by an impressive 205%. Rakesh predicts that Nvidia will continue to maintain its dominant position in AI chips until at least 2027. He believes that by that year, the company could generate approximately $300 billion in AI-specific revenue, holding a 75% market share of AI server units. This projection is ten times higher than his previous estimate of $25 billion to $30 billion in AI revenues for this year.
Rakesh’s positive view of Nvidia is supported by the company’s first-quarter results, which were driven by the boom in generative artificial intelligence. As a result, Nvidia CEO Jensen Huang’s wealth has nearly doubled in 2021, making him the 32nd richest person in the world with a net worth of $40 billion—a significant increase of 189% this year alone.
With 86.9 million Nvidia shares, equating to approximately 3.5% ownership of the chipmaker, Huang has benefitted greatly from the company’s success. Rakesh is not the only analyst bullish on Nvidia, as Morgan Stanley previously designated the company as its top pick due to the high demand for its AI chips.
In summary, Nvidia’s stock price has had an outstanding run this year, and analysts are predicting even further upside. With its dominant position in AI chips and the potential for significant revenue growth, Nvidia remains at the forefront of the AI industry. As the company continues to deliver strong results, its stock price could be poised for continued success.
Frequently Asked Questions (FAQs) Related to the Above News
Why has Nvidia's stock price doubled this year?
Nvidia's stock price has doubled this year due to the increasing hype surrounding artificial intelligence (AI), as the company is a major player in AI chips.
What is Mizuho analyst Vijay Rakesh's new target for Nvidia's stock price?
Mizuho analyst Vijay Rakesh has set a new target of $530 for Nvidia's stock price, predicting a potential 20% upside.
How much has Nvidia's stock price surged in 2021?
Nvidia's stock price has surged by an impressive 205% so far in 2021.
What does Rakesh predict about Nvidia's dominant position in AI chips?
Rakesh predicts that Nvidia will maintain its dominant position in AI chips until at least 2027, with a 75% market share of AI server units.
How much revenue does Rakesh estimate Nvidia could generate from AI by 2027?
Rakesh estimates that Nvidia could generate approximately $300 billion in AI-specific revenue by 2027, a projection that is significantly higher than his previous estimate of $25 billion to $30 billion for this year.
How has Nvidia CEO Jensen Huang's wealth been impacted by the company's success?
Nvidia CEO Jensen Huang's wealth has nearly doubled in 2021, making him the 32nd richest person in the world with a net worth of $40 billion, representing a significant increase of 189% this year alone.
What has Morgan Stanley designated Nvidia as?
Morgan Stanley has designated Nvidia as its top pick due to the high demand for its AI chips.
What factors contribute to Nvidia's potential for continued success?
Nvidia's dominant position in AI chips, the potential for significant revenue growth, and strong results from the company all contribute to its potential for continued success in the AI industry.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
