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Nvidia Eyeing Fresh Record As Goldman Sachs Bullish On AI

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Nvidia Eyeing Fresh Record As Goldman Sachs Bullish On AI

(CTN News) – The stock of Nvidia (NVDA.O), opens new tab, was set to scale a new peak on Monday after Goldman Sachs raised its price target on the high-flying chipmaker’s stock in anticipation of major growth in AI-related revenues.

During premarket trading, the stock gained 3.4% to $683.80 and looked set to increase the company’s market capitalization by approximately $55 billion. The value of the company as of Friday’s close was $1.63 trillion.

In January, Nvidia experienced a record monthly gain in its market value as a result of the AI frenzy.

With the stock price up 34% so far this year, it has become more expensive to own compared to its peers.

In comparison with the industry average of 22.9 times forward earnings estimates, Nvidia’s shares trade at 31.4 times the company’s forward earnings estimate.
However, Goldman Sachs analyst Toshiya Hari believes there is still considerable room for growth.

According to Hari, Nvidia will remain the industry gold standard for the foreseeable future because of its robust hardware and software offerings, as well as the pace at which it continues to innovate.

According to LSEG data, Goldman Sachs analysts increased their price target to $800, the third highest among U.S. analysts covering the stock. This represents a 21% increase from current levels. A price target of $625 was previously set for the company.

Additionally, the bank raised its earnings estimates for Nvidia for 2025-2026 by 22% on average, citing sustained demand for AI servers and improving supplies of graphics processing units (GPUs).

There are signs that AI is being monetized by companies such as Microsoft (MSFT.O), Meta Platforms (META.O), opens new tab, as well as positive earnings outlooks from AI server manufacturer Super Micro Computer (SMCI.O).

While Nvidia has recorded billions of dollars in revenue as a result of the AI frenzy, other chipmakers that are not as deeply involved in making chips for artificial intelligence, such as Intel (INTC.O), have seen their shares fall.

According to LSEG data, Nvidia will report its fourth-quarter earnings on Feb. 21, with analysts expecting EPS of $4.51 and revenue of $20.19 billion.

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