Mizuho expects Nvidia to report some ‘growing pains’
Analysts at Mizuho said that while they expect Nvidia to report an “in-line” earnings report, they also expect some “growing pains.”
“Our checks indicate that while JanQ DC is expected in-line, AprilQ could be more flattish as near-term ramps remain modest given GB200 power/cooling requirements,” Mizuho said in a note last week.
DC refers to Nvidia’s data center revenue, which encompasses its GPU chip sales.
For Mizuho, the focus is on the second half of the year, as it expects a “strong” Blackwell ramp to make up for any lost revenues in the first half of the year.
“We continue to see NVDA driving strong industry leadership with its CUDA ecosystem, on top of its integrated HW platform where it has strong customer relationships,” Mizuho said, adding that it expects key customers Microsoft, Amazon, and Alphabet to turbocharger their Blackwell GPU purchases later this year.
Mizuho rates Nvidia at “Outperform” with a $175 price target.