Mizuho analysts remain confident in NVIDIA's (NVDA) leadership in the AI GPU space despite recent headlines about modest delays.
According to the latest update, Nvidia (NASDAQ:NVDA) continues to dominate the sector, even as it navigates challenges related to its B100 and GB200 GPUs. Mizuho notes that "NVDA continues to lead the charge," particularly with its pivot towards GB200 using NVL36/72, with ramping expected into 2025.
The analysts acknowledge that Nvidia's B100/GB200 GPUs have faced "a modest delay" due to heat issues, which required design changes. This has pushed back the ramp from the expected Q3 2024 to November-December 2024.
Despite this, Mizuho has raised its expectations for Nvidia’s H100/H200 demand by approximately 400,000 units, signaling strong overall demand.
The investment bank notes that while this delay has led to a slight adjustment in Nvidia's October quarter revenue expectations to $26.8 billion—just below the consensus of $27.3 billion—the overall outlook remains positive.
Looking ahead, Mizuho highlights the potential for Nvidia to ship 20-25K+ combined NVL racks in 2025, which could drive a "significant ASP boost" in fiscal years 2026 and 2027.
Furthermore, the analysts foresee a strategic shift in the second half of 2025 towards air-cooled B200A/210A GPUs on CoWoS-S, offering a win-win in terms of performance and power efficiency.
Despite the near-term adjustments, Mizuho has raised its price target for Nvidia to $132, up from $128, maintaining its Outperform rating on the stock.
As the firm concludes, Nvidia remains the clear leader in the AI GPU space, with the potential for continued growth well into the future.