NVIDIA (NVDA) Continues to Lead in AI GPU Space Despite Modest Delays - Mizuho Analysts
In the latest update, Nvidia (NASDAQ: NVDA) is still dominating the AI GPU sector, even with challenges surrounding its B100 and GB200 GPUs. Mizuho analysts express confidence in NVDA's leadership, especially with its pivot towards GB200 using NVL36/72, with ramping expected into 2025.
Although there have been modest delays in Nvidia's B100/GB200 GPUs due to heat issues and design changes, Mizuho has raised its expectations for H100/H200 demand by approximately 400,000 units, indicating strong overall demand.
Despite a slight adjustment in Nvidia's revenue expectations for the October quarter, Mizuho remains positive about the overall outlook. Looking ahead, they anticipate Nvidia shipping 20-25K+ combined NVL racks in 2025, potentially driving a significant ASP boost in fiscal years 2026 and 2027.
Additionally, Mizuho foresees a strategic shift towards air-cooled B200A/210A GPUs on CoWoS-S in the second half of 2025, offering improved performance and power efficiency.
With Mizuho raising its price target for Nvidia to $132 and maintaining an Outperform rating on the stock, it is evident that Nvidia remains the clear leader in the AI GPU space with promising growth potential for the future.
Analysis:
Nvidia's continued dominance in the AI GPU space, despite facing modest delays, is a positive sign for investors. The confidence shown by Mizuho analysts in Nvidia's future prospects, along with the expected increase in demand and strategic shifts in product offerings, point towards a bright outlook for the company. With a raised price target and Outperform rating, investors may consider Nvidia as a strong investment opportunity for potential growth and returns in the coming years.