• Mizuho said Nvidia’s upcoming earnings report would be the next big catalyst for AI stocks.
• According to the bank, demand for Nvidia GPU chips remains strong despite possible delays in the Blackwell chip.
• Mizuho raised Nvidia’s price target to $132, representing a potential upside of 26% from Thursday’s closing price.

Nvidia shares have fallen nearly 20% over the past month, but there is still plenty of upside for investors and the company’s upcoming earnings report will be a key catalyst for AI stocks, according to Mizuho.

The bank said in a note this week that investors should ignore the fuss about possible delays to Nvidia’s next-generation Blackwell chip because there is still unabated demand for its GPU chips.

Nvidia’s capacity for the current-generation H100 and H200 chips remains “tight,” Mizuho said, and any delays at Blackwell would not affect demand but would simply delay the company’s sales by about two to three months.

“Demand remains unchanged,” said Mizuho CEO Vijay Rakesh. “NVDA continues to lead the way.”

The bank raised its price target for Nvidia from $127.50 to $132, representing a potential upside of 26 percent from Thursday’s closing price.

Perhaps most important is Nvidia’s ability to raise prices on its next-generation chips, which should increase the average selling price of its AI-capable GPUs, Rakesh said.

According to Mizuho, ​​the cost of Nvidia’s Blackwell NVL72 GPU rack could be over $3 million, while the GB200 superchips could cost between $50,000 and $70,000 each.

That would be a big jump from Nvidia’s H100 chips, which cost around $40,000, and its H100/B100 GPU rack, which costs around $300,000 to $400,000, according to the bank.

These sharp price increases are expected to continue to provide a tailwind for Nvidia in 2025 and beyond, with Mizuho raising its earnings forecasts for Nvidia for 2026 and 2027 as the company launches its next-generation Ruby-based GPU chips.

Mizuho expects Nvidia to generate nearly $200 billion in revenue by 2027, more than triple the $61 billion it generated in 2024.

“We continue to see NVDA as the winner in the AI ​​GPU space, with AMD being the second player,” said Rakesh. “We would like to note that NVDA will be announcing its results on August 28th, which we see as the next big catalyst for AI-related names.”