Benzinga - by Piero Cingari, Benzinga Staff Writer.
Goldman Sachs revised its 12-month price target for Nvidia Corporation (NASDAQ:NVDA) to $1,100. That’s up from the previous $1,000, maintaining a ‘Buy’ rating.
This update follows an increase in earnings projections for 2025 through 2027. Analysts continue to praise Nvidia’s sustained demand for AI servers and an improving supply chain landscape.
Nvidia boasts significant year-to-date outperformance. The company recorded an 86% increase compared to the iShares Semiconductor ETF‘s (NYSE:SOXX) and the SPDR S&P 500 ETF Trust’s (NYSE:SPY) gains of 15% and 9%, respectively.
However, Goldman Sachs sees further room for growth.
“Our updated fiscal year 2026 non-GAAP EPS estimate of $40.78 is 35% above Street consensus, signaling potential for further upward movements in the stock price,” analyst Toshiya Hari wrote.
Nvidia currently trades at only 35 times its forward earnings. That’s substantially lower than its three-year average premium of 45x, Hari added.
Upcoming Nvidia Earnings Show Robust AI Market Dynamics The semiconductor innovator will release its first-quarter earnings on May 22.
Nvidia’s Data Center segment will continue its strong performance, analysts predict, due to AI-related computing and networking demand.
Hari expects new products like the H200, Spectrum-X, and Blackwell to support this year’s positive trajectory.
The commitment towards AI from top industry players remains strong, as Goldman Sachs noted. Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has confirmed a favorable outlook for AI and high-performance computing.
Major U.S. hyperscalers — Alphabet Inc (NASDAQ:GOOGL), Meta Platforms Inc (NASDAQ:META), Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT) — are poised to boost their AI-related capital expenditures in 2025.
While competitors like Advanced Micro Devices Inc. (NASDAQ:AMD) have advanced in the data center GPU market, Goldman Sachs believes “Nvidia will remain the de facto industry standard for the foreseeable future.”
Analysts attribute this to its comprehensive hardware and software capabilities, as well as a well-established ecosystem. “Nvidia’s annual introduction of new products and platforms sets a pace of innovation that keeps it at the forefront of the industry,” Hari noted.
Shares of Nvidia Corp. fell 1.1% during Tuesday’s premarket trading, after a 11% gain over the last three sessions.
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