Nvidia, AMD Price Targets Raised As AI Demand Keeps Roaring

Mizuho is sounding even more upbeat on two of the biggest names in AI chips Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD). Top analyst Vijay Rakesh stuck with his Outperform ratings but bumped both price targets to $205, pointing to a perfect storm of AI server demand and heavy hyperscaler spending.

Warning! GuruFocus has detected 5 Warning Signs with NVDA.

For Nvidia, that means roughly 13% potential upside. Rakesh is watching strong sales coming through Taiwan server makers like Wistron and Wiwynn, plus excitement building for the GB200 and GB300 GPUs. The new China GPU licenses could add another 300,000500,000 units a year in FY26, which could be a serious growth kicker. His long-range view now calls for revenue jumping from $208 billion in FY26 to $292 billion by FY28.

AMD's upside sits around 11%, with its Instinct GPU sales expected to leap from $8.57Billion in FY25 to $13.6Billion by FY27, helped by MI308 ramps in China and the MI355 launch. Rakesh also lifted his September-quarter view to $8.8 billion revenue and $1.15 EPS.

both chipmakers are still surfing the AI boom, and China's green light for new GPUs could make the next couple of years even more interesting.

This article first appeared on GuruFocus.

View Comments