Mizuho Raises Price Targets on NVDA and AMD Amid AI Server Demand Boom

Mizuho raises price targets for NVDA and AMD to $205, citing strong momentum in AI server demand and hyperscaler spending. Analyst Vijay Rakesh expects AI server demand to rise sharply, with Nvidia seeing strong revenue growth from Taiwan-based server makers. He also notes that new GPU licenses in China could add hundreds of thousands of units, boosting sales for both companies in H2 2025 and into 2026.

Mizuho Securities has raised its price targets for Nvidia (NVDA) and AMD (AMD), citing robust momentum in AI server demand and increased spending from hyperscalers. The analyst firm, led by Vijay Rakesh, expects a sharp rise in AI server demand, with Nvidia poised to benefit significantly from Taiwan-based server makers. Additionally, new GPU licenses in China could add hundreds of thousands of units, boosting sales for both companies in the second half of 2025 and into 2026 [1].

The AI server market has been a significant driver of growth for Nvidia, with its GPUs playing a crucial role in AI training and inference servers. The company has seen substantial revenue and profit growth over the last three years, driven by increased demand from big tech companies. Mizuho's upgrade in price targets reflects the analyst's bullish outlook on the continued growth of the AI server market [1].

In addition to Nvidia, AMD has also seen significant gains in the AI space. The company's MI308 chips are part of a deal with the U.S. government that allows exports to China in exchange for a 15% revenue-sharing agreement. This deal, brokered by President Donald Trump, has sparked both investor concern and curiosity, but it has also resulted in notable stock gains for both Nvidia and AMD [2].

The deal with Nvidia and AMD comes at a time of heightened trade tensions between the U.S. and China. The trade truce that reduced triple-digit tariffs is set to expire on August 12, but officials have signaled a possible extension following recent talks in Sweden. The deal with Nvidia and AMD is part of a larger negotiation that includes the potential relaxation of export controls on high-bandwidth memory (HBM) chips [2].

Mizuho's upgrade in price targets is a reflection of the analyst's confidence in the continued growth of the AI server market and the ability of Nvidia and AMD to capitalize on this growth. The firm's upgrade in price targets is a vote of confidence in the companies' ability to navigate the evolving global economic landscape and capitalize on the continued growth of the AI server market [1].

References:
[1] https://theoutpost.ai/news-story/foxconn-s-q2-profit-expected-to-surge-on-strong-ai-server-demand-19065/
[2] https://www.ainvest.com/news/deals-nvidia-amd-global-ai-standard-2508/