Analysts Foresee Nvidia’s Revenue Soaring to $300 Billion by 2027

Key Insights

• Mizuho analyst Vijay Rakesh says Nvidia’s stock price could rise another 20 percent due to the artificial intelligence (AI) boom.
• He even expects the chipmaker to generate around $300 billion from AI revenue by 2027.
• The stock has already doubled this year and is trading at $446 a share.

Chipmaker Nvidia has had a great year, doubling its share price amid artificial intelligence (AI) hype — and things could get even better, an expert believes.

Nvidia Stock Set for 20% Growth Amidst AI Boom

Mizuho analyst Vijay Rakesh has given Nvidia’s stock price another 20 percent upside — and even that new target of $530 is conservative, according to a note to customers Sunday seen by Markets Xplora. Rakesh’s previous price target for Nvidia was $400.

Nvidia shares closed Monday up 0.7 percent at $446.12 apiece. The stock is up 205 percent so far this year.

Rakesh also expects Nvidia to maintain its dominant position in AI chips until at least 2027.

The company could generate around $300 billion in AI-specific revenue by 2027 with a 75 percent market share in AI server units, Rakesh said. That’s 10 times his forecast of $25 billion to $30 billion in AI sales this year, he told Dow Jones on Monday.

As demand for generative AI accelerates, we see significant opportunities for hardware vendors that can meet the increased computational demands of large language models, particularly AI powerhouse NVDA, Rakesh wrote, referring to the Santa Clara-based chipmaker.

Rakesh’s assessment of Nvidia followed the company’s groundbreaking first-quarter results released in May amid the generative artificial intelligence boom.

Read also: What are the Best AI Stocks to Buy Now in 2023?

Consequently, Nvidia CEO Jensen Huang’s fortune has also nearly doubled this year, according to the Bloomberg Billionaires Index. With a net worth of $40 billion, he is now the 32nd richest person in the world – up 189 percent this year.

Huang owns 86.9 million Nvidia shares, about 3.5 percent of the Santa Clara-based chipmaker, according to the company’s 2023 annual report.

Mizuho’s Rakesh isn’t the only analyst to be positive about Nvidia. In June Morgan Stanley called Nvidia its “top pick” due to demand for its AI chips.