Nvidia’s stock price hit fresh all-time highs this week after several analysts boosted their price targets and growth estimates, citing the company’s commanding lead in artificial intelligence chips.
Goldman Sachs Predicts Surge to $800 Per Share
On Monday, Goldman Sachs analyst Toshiya Hari increased his Nvidia price target to $800, the highest on Wall Street and 57% above current levels. Goldman added Nvidia to its “Conviction List” of top stock ideas, predicting that booming demand for AI chips will drive rapid growth over the next several years.
Hari cited Nvidia’s industry-leading GPU architecture and software platform as key competitive advantages in the exploding AI market. He expects the company’s data center revenue growth to accelerate from 2023 onwards, fueled by the adoption of large language models like ChatGPT across cloud platforms.
Other analysts echoed Goldman’s bullish outlook:
| Firm | Old Price Target | New Price Target | % Increase |
|---|---|---|---|
| Goldman Sachs | $625 | $800 | 28% |
| Bank of America | $255 | $320 | 25% |
| Citi | $243 | $284 | 17% |
Earnings Beat Wall Street Expectations
Nvidia reported strong fiscal fourth quarter results last week, beating analyst estimates on both the top and bottom lines.
- Q4 revenue rose 48% year-over-year to $7.64 billion, ahead of the $7.52 billion consensus.
- Q4 EPS grew 69% to $1.08, exceeding the $0.81 forecast.
The company’s gaming and data center segments posted especially robust growth as demand for GeForce GPUs and AI accelerators remained elevated.
Nvidia expects its new H100 data center GPUs to drive further share gains, supported by the launch of AI-focused platforms like NeMo and BioNemo. Management struck an overwhelmingly positive tone on the earnings call about secular growth trends.
Where Does Nvidia Go From Here?
With shares already up over 60% year-to-date, is there still room for additional upside? Many analysts say yes.
Morgan Stanley’s Joseph Moore reiterated his “Overweight” rating post-earnings, arguing the stock looks inexpensive at current levels if Nvidia grows into its long-term AI potential. Moore raised his bull case to $1000, which would imply over 80% returns from today’s price.
Evercore ISI’s C.J. Muse likewise sees a path to $1000 based on Nvidia’s dominant position in large language models and generative AI. Muse predicts the total addressable market for AI infrastructure could reach $100 billion by the end of the decade, leaving substantial headroom for expansion.
On the other hand, Bernstein analyst Stacy Rasgon struck a more cautious tone despite lifting his target to $325. Rasgon believes expectations already reflect a “virtually perfect trajectory” for Nvidia’s data center business. With tech valuations still elevated overall, he worries that any hiccups in the AI transition could hit the stock hard from today’s elevated levels.
Final Verdict: Nvidia Leads a Secular Growth Market
Nvidia finds itself at the forefront of not one but multiple seismic technology shifts, from video gaming to cloud computing to artificial intelligence. With its cutting-edge GPU architecture and commanding developer ecosystem, Nvidia appears poised to dominate the accelerating AI wave.
While the stock may be pricing in significant future expectations already, Nvidia’s long-runway for expansion in AI and adjacent markets should justify lofty valuations. For investors willing to weather potential volatility, Nvidia represents one of tech’s most promising secular-growth stories for the next decade.
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