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Can Nvidia really be the only AI winner? Mizuho discusses

Published 04/06/2024, 15:38
Updated 04/06/2024, 15:41
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Following the latest updates from Computex, Nvidia (NASDAQ:NVDA)'s stock surged 5% to close at a new all-time high. However, the broader semiconductor sector saw declines despite the positive news, prompting Mizuho analysts to question, “Can NVDA really be the only winner?”

Outside of TSMC and Micron (NASDAQ:MU), both of which are direct beneficiaries of Nvidia’s new GPU products set to be released in 2025 and 2026, nearly “the entire semi sector closed down on the day,” Mizuho highlighted. 

AMD (NASDAQ:AMD) shares, despite initially gaining 2-3% following the release of a detailed GPU product roadmap for its MI platform over the next two to three years, also ended the day down 2%. Arm Holdings ADR (NASDAQ:ARM) stock climbed 550 basis points, driven by bullish comments by its CEO at the Computex event. 

Still, the semiconductor sector is “starting to feel more and more narrow,” Mizuho noted.

“MRVL was not a good sign post their print, guide and stock down low teens in past 2 days,” they wrote. “Nothing terrible or really worrisome, but feeling toppy with some investor exhaustion for any stock not named NVDA and that actually feels a lot more driven by passive, quant and retail investors vs active managers chasing into a stock split to come.”

Mizuho analysts hiked their target price on Nvidia to $1,275 from $1,180 and lifted the revenue and earnings per share (EPS) estimates for the next few years. 

NVDA’s latest upswing to a new record high came after CEO Jensen Huang announced plans for the Blackwell Ultra chip in 2025 and the next-generation Rubin platform for 2026 over the weekend.

The company is set to complete its planned 10-for-1 stock split on Friday this week.



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