Nvidia Named Top Pick for November by Mizuho

Investing.com — Mizuho (NYSE:MFG) has added Nvidia (NASDAQ: NVDA) as a new top pick for November, highlighting its strong position in the AI and data center markets.

Analysts at Mizuho reiterated an Outperform rating on Nvidia, setting a price target of $140. They emphasize Nvidia's dominant position in AI training and inference chips for data centers, where it is estimated to hold over 95% market share.

Mizuho projects that the data center market for AI chips will grow at a 74% compound annual growth rate, potentially surpassing $400 billion by 2027. This growth is attributed to Nvidia's advanced products and roadmap, including the H200, GB200, and GB300 chips expected to launch in 2024 and 2025. They also foresee Nvidia's Grace CPU and NVL36/72 servers driving content growth within AI servers.

Beyond data centers, Mizuho sees continued strength in Nvidia's gaming segment, noting an estimated 75% market share in PC gaming GPUs.

The firm stated, "We believe headwinds from China AI chip restrictions remain muted" and also identifies upgrade cycle opportunities for the RTX 50-series, given that RTX 40-series penetration is around 10% of the PC market, which could enable Nvidia to achieve a gaming revenue run rate exceeding $10 billion per year.

Mizuho points out Nvidia's competitive advantage over main rivals AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC). While AMD increases MI300 production and Intel advances its Gaudi3, Mizuho expects Nvidia to maintain its dominance through performance enhancements from its Blackwell architecture, offering cost-efficient gains in average selling prices.