Mizuho Securities increased its price target on NVIDIA (NASDAQ:NVDA) to $530 from $400 while reiterating its Buy rating on the stock.

After a thorough examination of the overall server industry and the future of artificial intelligence (AI), Mizuho analysts anticipate that the demand for GenAI (generative AI) will continue to be a driving force.

According to their assessment, there is a substantial opportunity for the GPU supplier NVIDIA. The total addressable market (TAM) is predicted to expand tenfold in the next five years, surpassing $400 billion.

The analysts expect AI server adoption to reach around 11% by 2027. They believe that NVIDIA, with a more conservative market share of approximately 75% (compared to its current share of over 90%), could potentially generate around $300 billion in revenue from AI-related products.