Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 25 (Xinhua)-- the share price of chipmaker Nvidia has doubled this year because of the artificial intelligence (AI) boom. Moreover, it has more room for development. Vijay Rakesh, an analyst at Mizuho, said in a note to clients on Sunday that Nvidia's share price still had 20 per cent room to rise, raising its target price to $530, up 32.5 per cent from the previous $400. He said the target price was still "conservative".

Rakesh believes that Nvidia's dominant position in the field of AI chips can be maintained until at least 2027. By then, he estimates, the company will be able to generate $300 billion in revenue from AI-related businesses (CTOnews.com Note: currently about 2.16 trillion yuan), accounting for 75 per cent of the AI server market. That is 10 times higher than his forecast for the company's AI revenue this year, which he said could be between $25 billion and $30 billion in AI this year.

"as the demand for generative AI accelerates, we see a huge opportunity for hardware vendors that provide higher computing power for large language models, especially Nvidia, a strong player in AI," Rakesh wrote. "

Nvidia reported first-quarter results in May, showing amazing growth from generative AI. The company's first-quarter revenue reached $7.2 billion, exceeding Wall Street expectations. However, the company did not disclose how much revenue it received from AI-related businesses.

The rise in Nvidia's share price has also boosted the wealth of its chief executive, Huang Renxun. According to the Bloomberg Billionaires Index, he is now the 32nd richest man in the world, with a net worth of $40 billion, up 189 per cent so far this year. Huang Renxun owns 8690 shares of Nvidia, accounting for 3.5 per cent of the company.

Rakesh is not the only analyst bullish on Nvidia. In June, Morgan Stanley also listed Nvidia as its "best choice", citing strong demand for its AI chips.

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