Top Mizuho analyst Vijay Rakesh reaffirmed his Outperform ratings for stocks of semiconductor giants Advanced Micro Devices (AMD) and Nvidia (NVDA), while raising his price target for Broadcom (AVGO). The 5-star analyst expects continued momentum in AI data centers, stronger product launches, and rising demand for custom chips to drive growth across all three companies.
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AMD Gains from New AI Platforms and Server Strength
Rakesh reiterated an Outperform rating and kept a $275 price target on AMD, saying the company remains the second-largest AI chip maker after Nvidia and is well positioned to benefit from growing AI demand. He highlighted progress on AMD’s MI350 and MI400X chips, which are expected to ramp through 2025 and 2026.
He also pointed to AMD’s new Helios rack-scale system, built on an “Open Rack Wide” design from Meta (META), as a step toward scaling its AI hardware more efficiently. Rakesh expects AMD’s data center and server business to stay solid, helped by new product launches and a gradual recovery in PC demand.
Nvidia Keeps Its AI Lead with Next-Gen Data Center Design
For Nvidia, Rakesh maintained an Outperform rating and a $225 price target, saying the company continues to dominate the AI data center market, holding more than 95% share.
He said Nvidia’s shift to an 800V data center power systems marks a big jump in energy efficiency, preparing it for rising power needs across AI workloads. Rakesh expects Nvidia’s AI data center sales to grow around 60% per year, reaching over $500 billion by 2028, supported by its strong product roadmap and new partnerships.
Broadcom Price Target Raised on AI Chip Deals
Rakesh lifted his price target on Broadcom to $435 from $430, keeping an Outperform rating. He said new AI partnerships with Anthropic and OpenAI should boost growth, with AI revenue possibly topping $80 billion by 2028.
Rakesh added that Broadcom’s networking chips and custom AI silicon give it a key edge as AI demand grows worldwide.
Which Is the Best Chip Stock, According to Wall Street?
Using the TipRanks Stock Comparison Tool, analysts rate AMD a “Moderate Buy” with about 7.5% upside over the next year. Nvidia and Broadcom both hold “Strong Buy” ratings, offering roughly 24% and 14% upside, respectively.
