Goldman Sachs has raised its 12-month price target on Nvidia from $210 to $240, showing confidence that the chipmaker’s strong run will continue into its next earnings report, scheduled for November 19.
The bank kept its buy rating in place, saying the new target suggests an 18% potential upside from current levels. The decision reflects Wall Street’s growing focus on Nvidia’s expanding role in AI infrastructure and data centers.
The update came in a detailed note from Goldman Sachs analyst James Schneider, who said investor expectations are higher heading into the quarter after several major AI-related announcements and Nvidia’s recent GTC developer conference.
James wrote that “we believe investor expectations have increased heading into the quarter, given multiple AI infrastructure announcements and following the company’s recent GTC event.” He added, “we expect Nvidia to deliver a beat-and-raise quarter, with the stock reaction likely hinging on the level of upside to guidance.”
The note also included new earnings forecasts, with third-quarter earnings per share (EPS) now estimated at $1.28 and fourth-quarter EPS at $1.49, 3% and 5% above Wall Street consensus, respectively.
Goldman raises Nvidia datacenter estimates and outlines key earnings drivers
In the same report, Goldman Sachs increased its datacenter revenue forecast by 13%, citing stronger demand for AI computing power across hyperscalers and enterprise clients. James said the firm identified four factors likely to influence Nvidia’s stock performance after earnings.
These include more information about its $500 billion long-term revenue projection, updates on OpenAI deployments that rely on Nvidia hardware, progress on the company’s next-generation Rubin chip expected next year, and the possible resumption of its China business, depending on export restrictions.
James emphasized that visibility around these developments could shape Nvidia’s stock trajectory through year-end. He wrote, “we expect the debate around: (1) the magnitude of upside to hyperscaler CapEx; (2) contribution from non-traditional customers in CY26 to dictate stock price action into year end.”
He added that Nvidia’s stock will likely trade based on quantitative data points that give clarity on 2026 estimates. Nvidia shares have already climbed 51% this year, making it one of the top-performing stocks on the market.
AI enthusiasm lifts Nasdaq as Amazon fuels investor confidence
Elsewhere in markets, the Nasdaq Composite gained 0.4% on Friday, helped by a rally in Amazon, which boosted overall AI optimism. The S&P 500 finished flat after giving up early gains, while the Dow Jones Industrial Average dropped 108 points, or 0.2%.
Amazon shares jumped 10% after reporting that its cloud unit, AWS, saw 20% revenue growth in Q3, beating forecasts. CEO Andy Jassy said AWS is “growing at a pace we haven’t seen since 2022,” adding that demand for both AI and infrastructure services remains strong.
Amazon’s strong results also sent AI-related stocks higher. Palantir rose over 2%, Oracle gained 1%, and Tesla advanced 1%. Netflix added 3% after announcing a 10-for-1 stock split.
However, the gains followed a rough Thursday session where major tech stocks like Meta, Microsoft, and Nvidia pulled markets lower amid concerns about soaring AI spending. Meta suffered its biggest one-day loss in three years, reminding investors that not every AI bet pays off smoothly.
Despite the volatility, the S&P 500, Nasdaq, and Dow are all on track for a winning week and month. The S&P is up 0.4% this week, the Nasdaq 2%, and the Dow 0.3%.
For October, a month notorious for wild swings, the S&P has climbed about 2%, the Nasdaq more than 4%, and the Dow roughly 2%. The Dow is now pacing for its sixth straight positive month, something that hasn’t happened since 2018.
Join a premium crypto trading community free for 30 days – normally $100/mo.
Source: https://www.cryptopolitan.com/goldman-sachs-lifts-nvidia-price-target/