To The Moon

Mizuho Securities strongly recommends $NVIDIA Corp(NVDA)$ : Q2 earnings will be a major catalyst and can rise another 26%.

Although Nvidia's stock price has fallen nearly 18% in the past month, according to Mizuho Securities, the stock still has a lot of room to rise, and its upcoming earnings report will be a major catalyst for artificial intelligence stocks.

In a recently released report, the bank said that investors should ignore the noise related to the possible delay of Nvidia's next-generation Blackwell chip, and pointed out that the market demand for its GPU chips remains continuous.

There is still tight capacity for Taiwan Semiconductor's (TSM) Chip-on-Wafer-on-Substrate with the continued ramp of Nvidia's H100 and H200 GPUs, analyst Vijay Rakesh said, as Nvidia continues to see strong orders for the line of accelerators. Rakesh upped his price target on Nvidia to $132 from $127.50.

However, Nvidia is now starting to pivot to the Blackwell line using NVL36/72, which uses a new architecture of Chip-on-Wafer-on-Substrate, known as CoWoS-L. This should continue to ramp into 20205, Rakesh added.

And even with the news that mass production of the Blackwell line could be delayed until early next year, demand for it hasn't changed, Rakesh added.

Lastly, Nvidia could pivot back to the B200A and 210A in the second-half of 2025 and part of 2026 due to better Chip-on-Wafer-on-Substrate supply for low-to-mid budget AI servers, Rakesh said.

Nvidia is slated to report results after the close of trading on August 28. A consensus of analysts expects the company will earn $0.64 per share on $28.54B in revenue.

The bank raised Nvidia's target price from $127.50 to $132, which means that the stock will rise by about 26% from Friday's closing price.