Nvidia Shares Rise Premarket After Goldman Sachs Raises PT to $800
In a bullish endorsement that underscores the burgeoning demand for artificial intelligence (AI) and server technology, Goldman Sachs has significantly upgraded its outlook for NVIDIA (NASDAQ: NVDA), setting an ambitious $800 price target for the tech giant’s shares.
This optimistic projection follows a comprehensive analysis by the investment bank, which anticipates robust growth in NVIDIA’s AI server business and a notable increase in its non-GAAP earnings. With the AI sector’s rapid expansion acting as a key growth driver, NVIDIA is poised to capitalize on the increasing investments from cloud service providers and the introduction of cutting-edge products like the H200 and B100 GPUs.
As NVIDIA continues to lead the AI revolution, its stock performance and the backing of influential investors like Stanley Druckenmiller highlight the company’s strong financial health and the promising outlook of its shares, up 3.43% at the time of writing in premarket trading.
Goldman Sachs Analysts Set $800 Price Target for Nvidia
Goldman Sachs is significantly raising its non-GAAP earnings estimates for NVIDIA as the firm sees strong demand for AI servers driving the chipmaker’s growth. In a recent research note, analysts increased their fiscal 2025 and 2026 earnings per share forecasts by 22%, excluding stock-based compensation. The investment bank expects NVIDIA’s Data Center revenue to keep growing into the first half of 2025, reversing an earlier prediction of a decline. Goldman cites continued investments by cloud providers, an expanding customer base, and new products like the H200 and B100 GPUs.
The Wall Street firm maintains a “Buy” rating on NVIDIA shares while adding the stock to its Conviction List. With a 12-month price target of $800, Goldman sees a 21% upside potential from current levels, highlighting an attractive risk/reward profile for the chipmaker’s stock. The bullish outlook on NVIDIA has also received support from notable investors. Billionaire hedge fund manager Stanley Druckenmiller recently endorsed NVIDIA, underscoring the company’s leadership position in artificial intelligence.
Despite U.S. export controls restricting sales of its advanced A100 and H100 chips to China, NVIDIA is maneuvering to sustain demand through new A800 and H800 GPUs. These strategic product launches aim to navigate regulatory challenges while maintaining a market presence in China. With a significant stake in NVIDIA, Druckenmiller’s long-term investment underscores the confidence in the company’s prospects amid an evolving geopolitical landscape.
Nvidia’s Stock Performance
NVIDIA closed at $661.60 per share on February 2, 2024. This represents a significant increase of $31.33 or 4.97% from its previous close of $630.27. In pre-market trading on February 5, NVDA increased 3.37% at $683.90. The semiconductor company’s shares have traded in a 52-week range of $204.21 to $666.00, with the current price close to the upper limit. NVIDIA boasts a staggering market capitalization of $1.634 trillion and a trailing 12-month PE ratio of 86.94.
With an average daily trading volume of 42,346,785 shares, NVIDIA is a highly liquid stock. Analysts remain bullish on the company’s prospects, with an average 12-month price target of $646.89 from 46 analysts covering the stock. This implies a potential upside of around 21% from current levels. Recent ratings include Goldman Sachs maintaining a “Buy” and Cantor Fitzgerald reiterating an “Overweight” stance in January. NVIDIA is scheduled to report its next earnings on February 21, 2024, providing another potential catalyst for the surging shares.
Do you think NVDA will continue its bull run through this year? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.