Mizuho Raises Estimates and Price Targets for AI Server Stocks

Mizuho raised estimates and price targets for global AI server and semiconductor names, citing strong Q2 revenue, hyperscaler ramps, and China license approvals. The bank forecasts hyperscaler capex to climb 54% YoY in 2025 and AI accelerator shipments to reach 14 million units in 2026. Mizuho raised price targets for Nvidia to $205, AMD to $205, Dell to $160, and Credo to $135.

Mizuho Financial Group has recently revised its estimates and price targets for several global AI server and semiconductor companies, citing robust Q2 revenue, significant hyperscaler ramps, and the approval of China licenses. The bank predicts that hyperscaler capital expenditure (capex) will increase by 54% year-over-year (YoY) in 2025 and AI accelerator shipments will reach 14 million units in 2026.

Mizuho has raised its price targets for Nvidia (NVDA) to $205, AMD (AMD) to $205, Dell Technologies (DELL) to $160, and Credo (CREDO) to $135. These increases reflect the bank's optimism about the companies' performance and the broader AI market trends.

Nvidia, in particular, has seen strong performance in recent quarters, with the company delivering 10 consecutive quarterly earnings per share (EPS) beats. The company is expected to report its fiscal Q2 earnings after the closing bell on August 27, 2025, with Wall Street expecting a non-GAAP EPS of $1.00 and revenue of $45.70 billion. Goldman Sachs has also raised its price target for Nvidia to $200, citing the company's strong AI infrastructure demand and the potential for China sales to boost revenue [1].

The approval of H20/MI308 GPU sales to China is expected to have a significant impact on Nvidia's revenue and margins. The company guided Q2 sales to around $45 billion, plus or minus 2%, factoring in lost sales from previously stalled H20 GPU shipments to China. With China sales back online, Nvidia could see an extra $20 billion in revenue and $0.40 in EPS by FY27 [1].

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. The company's equity trading volumes doubled year-over-year to $209.1 billion, while crypto trading volumes surged 217% to $16.8 billion [2].

The strong growth in the AI market and the approval of China licenses are expected to drive demand for AI server and semiconductor products. Mizuho's revised estimates and price targets reflect the bank's bullish view on the sector's prospects.

References:
[1] https://finance.yahoo.com/news/goldman-sachs-revamps-nvidia-stock-160300998.html
[2] https://www.stocktitan.net/news/HOOD/robinhood-markets-inc-reports-july-2025-operating-k89gvf2x18xs.html