Mizuho Securities’ top analyst Vijay Rakesh believes Nvidia (NVDA) is still the dominant player in the semiconductor industry despite rival Alphabet’s (GOOGL) push to sell its custom tensor processing units (TPUs) to major clients such as Meta Platforms (META). He also highlighted Alphabet’s recent deal to sell up to 1 million TPUs to AI startup Anthropic PBC (PC:ANTPQ).
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Rakesh maintained his Buy rating on NVDA stock and a price target of $245, implying 37.8% upside potential from current levels. He is a five-star analyst on TipRanks, ranking #50 out of 10,113 analysts tracked. Rakesh has a 59% success rate and an impressive average return per rating of 30.40%.
Momentum from the $500B Blackwell Ramp
According to The Information, Meta is planning to spend billions on installing Google’s TPUs in its data centers beginning in 2027. Additionally, it plans to start using TPU capacity by renting from Google Cloud as early as 2026. Rakesh pointed out that Meta currently relies heavily (95%) on GPUs (graphics processing units) from Nvidia and Advanced Micro Devices (AMD), with Meta being a larger customer for AMD than Nvidia.
Despite the rising competition from Google, Rakesh emphasizes that Nvidia’s demand remains strong, as reflected in recent guidance. At Nvidia’s GTC Conference held on October 29, CEO Jensen Huang revealed orders totaling $500 billion for its new Blackwell and Rubin AI chips over the next five quarters, underscoring strong global demand for Nvidia’s AI hardware.
Nvidia Boasts a Diverse Customer Base
Rakesh also noted that Nvidia has a well-diversified customer base, spanning cloud service providers (CSPs), enterprise customers, and new sovereign deals in the Middle East with Humain, and Neoclouds through collaboration with OpenAI (PC:OPAIQ) and CoreWeave (CRWV). Nvidia’s competitive edge in AI hardware and software is founded on its CUDA platform, which creates a significant barrier to entry for competitors.
Is NVDA Stock Still a Buy?
Yes, analysts remain highly optimistic about Nvidia’s long-term outlook. On TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell rating. The average Nvidia price target of $257.26 implies 44.7% upside potential from current levels. Year-to-date, NVDA stock has surged 32.4%.
