Nvidia’s Dominance in AI Training Chips Expected to Continue
As the tech giant prepares to release its third-quarter earnings on November 20, analysts at Mizuho have raised their price target for Nvidia’s stock, citing its dominant market share in chips used for AI training in data centers.
Market Leader
With an estimated 95% market share, Nvidia is expected to maintain its leadership position in the AI training and inference chip market for data center applications. This dominance is driven by the company’s innovative family of AI chips, including its next-generation Blackwell graphics processing units.
Earnings Expectations
The analyst consensus projects Nvidia to report revenue growth of 82% year-over-year, with an estimated revenue of $33.07 billion. This significant growth is fueled by the increasing demand for Nvidia’s AI chips.
Stock Performance
Nvidia’s stock has nearly tripled in 2024, driven by the company’s strong performance in the AI chip market. Shares recently rose nearly 2% to about $148, nearing recent record highs.
Mizuho’s Price Target Increase
Mizuho analysts have upped their price target for Nvidia’s stock from $140 to $165, slightly above the analyst consensus near $160. This increase reflects the firm’s confidence in Nvidia’s ability to maintain its market leadership.
A New Era for Nvidia
Nvidia’s upcoming earnings report will be its first as a member of the Dow Jones Industrial Average, a milestone achieved after the company joined the blue-chip index last week alongside paint maker Sherwin Williams. As the world’s most valuable company, Nvidia’s continued success is expected to have a significant impact on the tech industry.
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