Mizuho Securities raised its price target on Nvidia Corp. to $315 from $300, citing sustained demand for the chipmaker’s data center products and an outlook for revenue growth exceeding consensus estimates.
The upgrade is based on an estimated price-to-earnings ratio of about 20 times for the fiscal year ending January 2028. Nvidia’s shares were trading at $210.43 on August 26, down $2.63, or 1.23%, in afternoon trading. The company’s trailing price-to-earnings ratio stood at 32.3 times.
Mizuho’s revised valuation comes as Nvidia reported July quarter revenue of $96.2 billion, more than doubling from the prior year. Adjusted earnings per share reached $2.22, surpassing Wall Street’s forecast of $2.08. For the October quarter, Nvidia projected revenue of $108 billion, with data center revenue expected to increase sequentially by 12%.
The analyst firm now estimates Nvidia’s revenue for fiscal 2028 at approximately $700 billion, well above the consensus of $574 billion. Mizuho’s projection implies growth of more than 70% compared with the prior year. Data center revenue in the July quarter totaled around $89 billion, a 117% year-over-year increase and an 18% rise sequentially. CPU revenue advanced over 100% year-over-year, exceeding $40 billion.
Mizuho described demand as growing 100% year-over-year, with supply remaining constrained. The firm noted strong adoption of the Blackwell Ultra platform and the commercialization of the Vera Rubin product, which is projected to contribute about 20% of October quarter revenue.
Gross margins are expected to decline by 100 basis points sequentially to 74% in the October quarter, with a floor anticipated between 71% and 72% in January. Margins are projected to stabilize between 72% and 73% for fiscal 2028.
Other firms have also revised their outlooks. KeyBanc maintained an overweight rating with a $330 price target, while JPMorgan set its target at $320. BofA Securities increased its fiscal 2028 earnings-per-share estimate by 19%.
