Goldman Sachs analysts reaffirmed their Buy rating on Nvidia (NASDAQ: NVDA) and raised their 12-month price target from $625 to $800.
The new price target of approximately 21% increase from Friday's closing price this week is based on Friday's closing price for NVDA stock.
“We reaffirm our Buy rating on NVDA. Our new 12-month price target points to a potential improvement of approximately 21% from current levels, and our positive/negative analysis suggests an attractive risk/reward profile.”
Goldman's revised forecast for the 2025/26 financial year reflects a 22% average increase in non-GAAP EPS (excluding stock compensation expense), taking into account recent strong AI server demand indicators and better supply conditions for GPUs. He said.
Contrary to past expectations, data center revenue was expected to decline in the second half of calendar year 2024, but analysts now expect steady growth through the first half of calendar year 2025.
It said the adjustment was due to "continued investments in Gen AI infrastructure by large cloud service providers, expanded customer profiles, and multiple new product cycles (H200, B100, etc.)."
