Nvidia: Goldman Sachs lifts target, sees 11% potential upside

Investing.com -- Goldman Sachs raised its price target for Nvidia (NASDAQ:NVDA ) to $150 from $135 per share in a note Friday, reflecting an 11% potential upside.

The investment bank said that in a recent investor meeting with Nvidia's CEO Jensen Huang, CFO Colette Kress, and IR representative Stewart Stecker, its analysts came away with a stronger conviction about Nvidia's competitive position, particularly in relation to the increasing complexity of inference workloads.

"We came away from the NDR with a better appreciation of the company's competitive moat and, importantly, the projected increase in Inference workload complexity as well as its implications for future compute demand," Goldman Sachs stated.

The bank also said Nvidia's competitive moat rests on various factors such as the company's large installed base, its ability to innovate not just at the chip level but at the data center level, and its robust and growing software offerings, including domain-specific libraries such as Nvidia Parabricks (i.e. genomics analysis) and Nvidia AI Aerial (i.e. software-defined and cloud-native 5G networks).

The firm also increased its FY2026/27 revenue and non-GAAP EPS estimates by 7% and 8%, respectively, as they factored in higher cloud capex, robust order trends for AI servers, and improvements in the CoWoS outlook at TSMC.

"Our updated FY2026 non-GAAP EPS (excl. SBC) of $4.63 sitting 14% above FactSet Street consensus," said the analysts, who maintain a Buy rating on Nvidia and keep it on their Americas Conviction List.

Goldman Sachs views Nvidia as well-positioned to capture ongoing demand in AI and cloud computing sectors, reinforcing its bullish stance on the stock.

Source: Investing.com