Nvidia and AMD Price Targets Raised Amid AI Demand Boom

Mizuho analyst Vijay Rakesh raised price targets for Nvidia and AMD, citing strong AI server demand and hyperscaler spending. He bumped Nvidia's price target to $205, with 13% potential upside, and AMD's to $205 as well, with 11% upside. Rakesh expects Nvidia revenue to jump from $208 bln in FY26 to $292 bln by FY28, and AMD's Instinct GPU sales to leap from $8.57 bln in FY25 to $13.6 bln by FY27. China's green light for new GPUs could make the next couple of years more interesting for both chipmakers.

Mizuho analyst Vijay Rakesh has significantly increased price targets for Nvidia (NVDA) and AMD (AMD), reflecting robust demand for AI servers and substantial hyperscaler spending. Rakesh has raised Nvidia's price target to $205, representing a 13% potential upside, and AMD's target to $205, with an 11% upside. These revisions underscore the analyst's bullish outlook on the AI market and the companies' performance.

Rakesh expects Nvidia's revenue to surge from $208 billion in FY26 to $292 billion by FY28, driven by strong AI infrastructure demand and potential sales boosts from China. The analyst attributes this growth to Nvidia's recent performance, including 10 consecutive quarterly earnings per share (EPS) beats and the approval of H20/MI308 GPU sales to China [1]. The approval of these sales could add an extra $20 billion in revenue and $0.40 in EPS by FY27.

AMD, too, is expected to benefit from the AI boom. Rakesh forecasts Instinct GPU sales to leap from $8.57 billion in FY25 to $13.6 billion by FY27, reflecting a 40% year-over-year increase in AI GPU sales in Q2 2025 [2]. The analyst points to AMD's dual-play strategy—leveraging both CPUs and AI GPUs—and the company's growing relevance in the AI/HPC space.

The approval of China licenses could further fuel growth for both companies. Mizuho's optimism about the AI market is shared by other financial institutions. Robinhood Markets (HOOD) reported strong July 2025 operating metrics, with total platform assets reaching $298 billion, up 106% year-over-year, and crypto trading volumes surging 217% to $16.8 billion [3].

Nvidia has also expanded its AI capabilities by unveiling plans to bring RTX Pro 6000 Blackwell Server Edition GPUs to standard enterprise servers later this year. This move will make Blackwell accessible to a broader set of enterprises for AI and other traditional workloads [4].

Rakesh's revised estimates and price targets reflect a bullish view on the sector's prospects, driven by strong Q2 revenue, hyperscaler ramps, and China license approvals. Investors should closely monitor these developments as the AI market continues to evolve.

References:
[1] https://www.ainvest.com/news/mizuho-raises-estimates-price-targets-ai-server-stocks-2508/
[2] https://www.ainvest.com/news/amd-strategic-position-ai-hpc-market-balancing-long-term-growth-term-realities-2508/
[3] https://www.stocktitan.net/news/HOOD/robinhood-markets-inc-reports-july-2025-operating-k89gvf2x18xs.html
[4] https://www.datacenterknowledge.com/data-center-chips/nvidia-brings-blackwell-gpus-to-enterprise-data-centers