NVIDIA (NVDA) PT Raised to $175 at Mizuho
Mizuho analyst Vijay Rakesh raised the price target on NVIDIA (NASDAQ: NVDA) to $175.00 (from $165.00) while maintaining a Outperform rating.
The analyst comments: "NVDA reported a strong OctQ at $35.1B (cons $30B) and guided JanQ to $37.5B (in line w cons $37B) but below $39B+ buy-side ests. We would note: 1) key DC revs were ~ $30.8B, up 17% q/q (up 112% y/y), with purchase commitments up 4% q/q (up 48% q/q), 2) Enterprise AI rev up >3x y/y, with NIM and NeMo driving inference performance and as inference time scaling improves model quality, 3) JanQ Blackwell/GB200 ramps better than 'several $B' but pressuring margins, driving $2-3B incremental DC revenue in JanQ after 6Q's of ~4B+, 4) CY25E strength with NVL racks driving ASP, and 5) OctQ Networking down 15% q/q with higher Spectrum-X mix. NVDA noted GB200 NVL36/72 racks demand outpacing supply into F26E. Reiterating Outperform, raise ests/PT to $175 from $165 as NVDA remains our Mizuho 2024 Top Pick, leading the AI accelerator market growing at a >60% CAGR '23-'27E."