NVIDIA Corporation (NASDAQ: NVDA) stock surged to an all-time high on Monday following a significant move by Goldman Sachs analysts. They raised the price target for NVDA, pointing to the soaring demand for artificial intelligence (AI) and better availability of graphics processing units (GPUs).
Goldman Sachs has reaffirmed its “buy” rating on Nvidia and raised the price target to $800 per share. The move comes in response to promising industry trends, indicating strong demand for AI servers and improved GPU supply. The analysts at Goldman Sachs have also increased their estimates for Nvidia’s non-GAAP earnings per share for fiscal 2025 and 2026 by 22% on average.
The analysts wrote,
“We no longer assume a drop off in Data Center revenue in 2HCY24 and instead model consistent growth through 1HCY25 driven by continued spending on Gen AI infrastructure by the large cloud service providers, a broadening customer profile, and multiple new product cycles.”
Goldman acknowledges that the future trajectory of capital spending on Generation AI infrastructure is a point of discussion and expresses increasing confidence, especially considering signs of AI monetization. They believe demand for accelerated computing will continue to rise in 2025.
Meanwhile, Bank of America has also raised its price target for Nvidia to $800, underscoring that the demand for AI is still in its early stages. They see Nvidia as well-positioned with a diverse portfolio.
According to FactSet, Nvidia and other top companies like Amazon, Meta, and Alphabet are expected to lead S&P 500 earnings growth in the first quarter of 2024.
Nvidia will report fourth-quarter fiscal 2024 results after the bell on Wednesday, February 21.
NVIDIA (NASDAQ: NVDA) Stock Movement
NVDA stock rose 4.79% to close at $693.32 on Monday. The traders had exchanged hands with 67,111,743 (67.11 million) shares compared to the average daily trading volume of 42.37 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
