TLDR
- Nvidia stock slipped 0.1% in premarket trading to $181.43 after falling 0.9% Wednesday
- Foxconn reported AI servers now account for 41% of Q2 revenue, overtaking consumer electronics as biggest business
- Mizuho raised Nvidia price target to $205 from $192, citing strong AI server demand from Taiwan ODM data
- Nvidia pushed back against analyst reports claiming Rubin chip delays, saying the report was incorrect
- Foxconn projects over 170% growth in AI server revenue for current quarter
Nvidia shares edged lower in early Thursday trading despite continued positive signals from the artificial intelligence server market. The stock traded down 0.1% at $181.43 in premarket activity.
The decline followed Wednesday’s 0.9% drop. However, the chip giant received support from partner companies showing robust AI infrastructure demand.
Taiwan’s Foxconn delivered encouraging news for Nvidia’s business prospects. The contract manufacturer reported that cloud and networking products, including AI servers, now represent 41% of second-quarter revenue.
This marks a shift for Foxconn. AI infrastructure has overtaken smart consumer electronics as the company’s largest business segment.
AI Server Boom Continues
Foxconn projects dramatic growth ahead. The company expects AI server revenue to surge more than 170% in the current quarter.
These numbers matter for Nvidia. Foxconn builds servers that house Nvidia’s chips, making it a key demand indicator.
Mizuho Securities took notice of these trends. The firm raised its Nvidia price target to $205 from $192 while maintaining an Outperform rating.
The upgrade came after analyzing Taiwan ODM revenue data. Wistron posted 59% quarter-over-quarter growth while Wiwynn and Foxconn showed 23% increases.
Mizuho views these figures as positive signs for Nvidia’s July quarter results. The firm maintained its revenue estimate of $46.2 billion and earnings per share forecast of $1.01.
For fiscal 2026, Mizuho raised estimates. Revenue projections increased from $207 billion to $208 billion, with EPS rising from $4.48 to $4.51.
Chip Development On Track
Nvidia faced questions about its next-generation hardware this week. An analyst report suggested production delays for the company’s Rubin chips.
The company quickly responded with a denial. Nvidia said the report was incorrect and confirmed Rubin development remains on schedule.
The clarification addressed concerns about competitive pressure from Advanced Micro Devices. AMD shares gained 5.41% while Nvidia declined.
Mizuho identified several near-term growth drivers for Nvidia. These include ramps at xAI, Crowdstrike, and Oracle Cloud Infrastructure.
Microsoft continues leading hyperscaler deployments. This provides another positive catalyst for chip demand.
China could provide additional upside. Mizuho noted that granted licenses might drive demand for 300,000 to 500,000 GPUs annually in calendar 2026.
Both AMD and Nvidia stand to benefit from Chinese market opportunities. The firms compete in the high-performance computing space.
Nvidia’s GB200 and GB300 chip ramps are scheduled for October and January quarters. Strong deployment timelines position the company for continued growth.
Other chip stocks showed mixed trading. Advanced Micro Devices fell 0.5% in premarket activity while Broadcom declined 0.1%.
Foxconn’s AI server growth of over 170% projected for the current quarter represents the most recent data point supporting continued strong demand for Nvidia’s products.
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