I-Hwa Cheng / Bloomberg / Getty Images Nvidia Stock Reaches Record Levels After Goldman Sachs Raises Price Target Amid AI Revolution Nvidi...
Nvidia Stock Reaches Record Levels After Goldman Sachs Raises Price Target Amid AI Revolution
Nvidia (NVDA) stock attained an all-time high during intraday trading on Monday subsequent to Goldman Sachs analysts revising their price target upwards for the company. They cited increased demand for artificial intelligence (AI) and enhanced supply of graphics processing units (GPUs) as potential catalysts for bolstering the chipmaker's position.
Goldman Sachs reaffirmed its "buy" rating on Nvidia and raised its price target to $800 per share. As of approximately 2 p.m. ET on Monday, Nvidia shares surged by 4.1% to $688.49 per share, marking a more than threefold increase in value over the past year.
Goldman analyst Toshiya Hari remarked on Monday that previous concerns about reduced server demand in the latter half of 2024 now appear unfounded. Nvidia's server chips, particularly those focused on artificial intelligence, are experiencing increased demand as GPU supplies stabilize, Hari noted. With enhanced visibility extending through the first half of 2025, approximately 18 months ahead, Hari raised his earnings per share forecasts for 2025 and 2026 collectively by more than 20%. As a result of these adjusted earnings projections, Goldman raised its price target for Nvidia stock to $800, reflecting a 29% increase from the previous target of $620. The average price target for NVDA stock on Wall Street stands at $680. In addition to substantial pre-scheduled orders of server chips from major hyperscalers like Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL), Hari anticipates significant demand stemming from product cycles involving the B100 and H200 chips. The B100 represents a next-generation compute GPU designed for AI and high-performance computing (HPC) applications. Meanwhile, the H200 GPU offers 40% more memory bandwidth and 80% greater memory capacity compared to its predecessor, the H100.
Goldman Sachs highlighted the trajectory of capital spending on Gen AI infrastructure as a key point of discussion regarding NVDA's future beyond 2024. However, the firm expressed increasing confidence, particularly given indications of AI monetization, that demand for accelerated computing would persist and expand in 2025.
Bank of America also revised its price target for Nvidia to $800, emphasizing that AI demand is still in its early stages and that Nvidia holds a robust position with its diversified portfolio.
According to FactSet, Nvidia, along with other notable companies like Amazon (AMZN), Meta (META), and Alphabet (GOOGL), is projected to lead S&P 500 earnings growth for the first quarter of 2024.
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