Nvidia stock soared to record highs after Goldman Sachs raised its price target on the company, citing its strong position in the chip market for artificial intelligence. Analyst Toshiya Hari raised the 12-month price target to 800 from 625 and reiterated his buy rating on the stock. He believes Nvidia will benefit from robust AI server demand and improving GPU supply. In addition, he raised his earnings estimates for Nvidia for fiscal 2025 and 2026 and expects AI data center spending to continue.
Hari pointed to recent reports from Meta Platforms, Microsoft, and Super Micro Computer as backing his bullish stance on Nvidia. He believes that Nvidia is the industry gold standard in the AI chip market and is likely to outperform its rival, Advanced Micro Devices. The company’s fiscal fourth-quarter report, due on Feb. 21, is seen as the next potential catalyst for Nvidia stock. As a result, Nvidia has broken out of a flat base and is on five IBD stock lists.
In summary, Nvidia stock soared to record highs after Goldman Sachs raised its price target due to its strong position in the chip market for artificial intelligence. The analyst believes that Nvidia will benefit from AI server demand, GPU supply, and data center spending and expects the company to outperform its competitor, Advanced Micro Devices. The company’s fiscal fourth-quarter report is seen as the next potential catalyst for Nvidia stock.