Goldman Sachs Raises Nvidia Price Target to $1,100

Nvidia's stock continues to show remarkable potential even after an 81% rally this year, a recent analysis from Goldman Sachs suggests.

by Faruk Imamovic
Goldman Sachs Raises Nvidia Price Target to $1,100
© Getty Images/Justin Sullivan

Nvidia's stock continues to show remarkable potential even after an 81% rally this year, a recent analysis from Goldman Sachs suggests. The investment bank has adjusted its price target for Nvidia from $1,000 to $1,100, pointing to an anticipated 22% rise from its current level.

This optimistic projection is rooted in Nvidia's relatively low valuation compared to its industry peers and its rapid, sustainable growth trajectory. Goldman Sachs analyst Toshiya Hari emphasized the tech giant's growth prospects, particularly in the context of its earnings per share (EPS).

"We see positive EPS revisions driving another leg up in the stock, especially with NVDA trading at 35x or only a 36% premium to our coverage universe versus its past 3-year median premium of 160%," Hari noted.

Sustained Growth Through Strategic AI Investments

Further buoying investor confidence, mega-cap tech companies have indicated plans to significantly increase spending on AI infrastructure through 2025, following a year of substantial investment in 2024.

These commitments are expected to bolster continued revenue and profit growth for Nvidia, especially with the upcoming release of its next-generation Blackwell AI chip later this year. Nvidia is set to report its earnings results on May 22 after the market close.

Hari also highlighted several encouraging trends that reinforce the belief in sustained AI expenditure. These include remarks from TSMC on the strong outlook for server AI processors, expected to more than double in revenue year-over-year.

Similarly, major players like Amazon and Meta Platforms have hinted at escalating AI-related capital investments in 2025 from an already high base in 2024. Moreover, early signs of AI monetization have been noted by several AI hyperscalers and enterprise software companies, further exemplifying the sector's robust growth potential.

AMD, for instance, has upgraded its 2024 revenue forecast for its AI-focused GPU chip, the Mi300, to $4 billion from $3.5 billion, while Super Micro Computer has reported a surge in revenue growth and a record backlog, driven by high demand for AI servers.

Despite emerging competition, such as AMD's new chip and in-house designs from other tech giants, Nvidia is expected to maintain its industry dominance. "We believe Nvidia will remain the de facto industry standard for the foreseeable future given its competitive advantage that spans its hardware and software capabilities as well as the installed base and ecosystem it has built over multiple decades, and the pace at which it is and will be innovating over the next several years," Hari concluded.

Goldman Sachs