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Nvidia’s AI Dominance Fuels Analyst Optimism, Price Target Raised to $185 (NVDA)

Asktraders News Team trader
Updated 3 Jul 2025

Nvidia (NASDAQ: NVDA), the undisputed leader in artificial intelligence hardware, continues to generate bullish sentiment among analysts, with Mizuho Securities the latest to raise its price target on the stock.

Analyst Vijay Rakesh increased Mizuho's target to $185 from $170, reiterating an “Outperform” rating, citing resolved bottlenecks in the production of Nvidia's GB200 chips and a smoother path for the adoption of the upcoming GB300 series by AI server manufacturers.

This positive outlook hinges on expectations of robust sequential growth in AI data center revenue for both Nvidia and Dell (DELL) during the second half of 2025 and the first half of 2026.

Nvidia's stock has experienced a remarkable 54% surge over the past 3 months, to sit close to new highs, fuelled by insatiable demand for its AI solutions, and a rebound of bullish sentiment. Investors are keenly awaiting the company's June quarter earnings, expected soon, with revenue estimates hovering around $45-$46.6 billion. These estimates already factor in a $3 billion headwind from write-downs related to H20 chips, but analysts anticipate this will be offset by the strong ramp-up of the GB200 series.

Mizuho's confidence is underpinned by the belief that Nvidia is strategically positioned to capitalize on the burgeoning AI market. The firm projects Nvidia could generate a staggering $259 billion in AI-related revenue by 2027, capturing an estimated 74% of the AI accelerator market, projected to reach $350 billion.

Nvidia's first-quarter results, released in May, further solidify this outlook, with revenue reaching $44.06 billion, exceeding estimates, and the Blackwell NVL72AI supercomputer entering mass production. The Blackwell architecture accounted for a significant 70% of shipments, demonstrating rapid market adoption.

However, the road ahead is not without its challenges. Restrictions on H20 chips, aimed at curbing exports to certain regions, are expected to result in an $8 billion revenue loss. The company also faces competition from emerging players like DeepSeek and other Chinese firms, as well as potential supply constraints related to its Blackwell architecture. Tariff risks and broader macroeconomic uncertainties also loom large.

While challenges remain, Nvidia's strategic positioning, technological prowess, and financial strength continue to fuel analyst optimism and drive upward revisions of its stock price targets.

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