Nvidia Soaring Momentum Amid AI Surge: Goldman Sachs Raises Target Price
Nvidia stock soared to new heights on Monday, spurred by Goldman Sachs’ upward adjustment of its price target. The surge is fueled by anticipation of heightened earnings amid the flourishing artificial intelligence (AI) sector. The stock experienced a notable 4% climb, reaching $689.21, poised to augment the company’s market capitalization by approximately $70 billion. As of the previous Friday’s close, Nvidia was valued at $1.63 trillion, showcasing a remarkable monthly upswing in market value throughout January.
The robust 39% year-to-date surge in stock price has elevated its valuation above industry peers, with shares now trading at 31.4 times the company’s forward earnings estimate, surpassing the industry average of 22.9. Notwithstanding this, Goldman Sachs analyst Toshiya Hari envisions further expansion, underscoring Nvidia’s enduring industry preeminence driven by its resilient hardware, software offerings, and continuous innovation.
Goldman Sachs’ Bullish Outlook and Revised Price Target
Goldman Sachs’ revised price target for Nvidia stands at $800, ranking as the third highest among U.S. analysts covering the stock, indicating a 21% upside from present levels. This adjustment, up from the previous target of $625, underscores the bank’s unwavering confidence in sustained growth trajectory. In tandem, the bank bolstered its full-year 2025-2026 earnings estimates for Nvidia by 22%, citing robust AI server demand and an improving graphics processing unit (GPU) supply.
Hari drew attention to positive indicators of AI monetization from major companies like Microsoft (MSFT.O) and Meta Platforms (META.O). Furthermore, there is an optimistic earnings outlook from AI server manufacturer Super Micro Computer (SMCI.O). While Nvidia has been at the forefront of capitalizing on the AI boom, chipmakers with less involvement in AI, such as Intel (INTC.O), have witnessed their shares lag behind.
Nvidia is slated to unveil its results on Feb. 21, with analysts anticipating fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, according to LSEG data. The market eagerly awaits insights into the company’s performance amid the ongoing AI revolution.
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