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Chip designer NVIDIA Corporation could earn $259 billion in AI revenue by 2027 believes Mizuho's analyst Vijay Rakesh. Rakesh kept an Overweight rating for the shares and a $175 share price target in his note before the firm's highly anticipated earnings later this month. NVIDIA, whose shares are at the center of Wall Street's AI attention, lost close to $600 billion in market value last month during the DeepSeek selloff. While the shares have pared back some of their losses since then, investors are waiting to see whether the orders for its GPUs will materialize.
NVIDIA's Blackwell Ramp Will Pick Up The Steam In 2025, Says Analyst
Even before the DeepSeek selloff, NVIDIA's shares had lost some of their shine when it came to gains. While the firm was the most valuable technology company in the world, between the mid-June 2024 peak and before the selloff, its shares had added a modest 8.6%, which sharply lagged the S&P 500's 11.5% in gains.
The reason behind NVIDIA's sluggish share price movement lay in investors pausing to take stock of its margins and purported delays for the Blackwell GPUs. NVIDIA admitted in 2024 that Blackwell design problems had increased costs, and in 2025, the narrative for the latest AI GPUs appears to have shifted to their deliveries.
Mizuho's Vijay Rakesh comments on Blackwell shipments in a fresh note released today. The analyst believes that the first half of 2025 will be lackluster for the Blackwell ramp. As a result, he has trimmed his second fiscal quarter revenue estimates for NVIDIA to $36.7 billion.
Rakesh believes that cooling requirements on the GB200 are a key driver behind the orders being shifted later into the year. However, his long-term outlook for NVIDIA is positive. Within the note, Mizuho maintains a total addressable market (TAM) estimate for artificial intelligence accelerators at $350 billion and expects NVIDIA to capture 74% of the pie.
The expected market share means that NVIDIA could earn $259 billion in AI revenue by 2027. Its smaller rival AMD is estimated to capture a modest 4% of the market, while custom AI chips, such as those designed by Broadcom and Marvell, are expected to command a 21% market share. AMD's shares are down by 34% over the past year as Wall Street has soured on the firm's ability to capture the AI market by computing with NVIDIA and custom designers and wondered whether it could sustain growth momentum in the personal computing market.
For NVIDIA's fiscal fourth quarter, which ended in January, Mizuho believes that the firm can rake in $37.5 billion in revenue and $0.83 in adjusted EPS. The expected Blackwell ramp shifting in H2 has led it to reduce its fiscal year 2026 Q1 revenue estimate by $700 million to $41.1 billion and slash the EPS estimate by two cents to 89 cents a share.
However, for NVIDIA's current fiscal year, which will end in January 2026, Mizuho believes the firm can earn $196 billion in revenue, up from its earlier $189 billion estimate.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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