On Tuesday, Goldman Sachs raised its price target for Nvidia from $1,000 to $1,100, while reiterating its buy recommendation on the stock.
In a research note, the US investment bank explains that it has raised its earnings forecast for the graphics chipmaker by 8% for the period 2025-2027.
The firm justifies its optimism by the continuing solid demand for its processors for AI-optimized servers, and the continued improvement in the component supply chain.
Despite the stock's clear outperformance since the start of the year (+86%, compared with +9% for the S&P 500 index), Goldman believes that upwardly revised market estimates could continue to support the stock.
The New York bank points out that the stock is currently trading on a PER of 35x, a premium of just 36% to the sector, compared with a three-year median of 160%.
The stock is on Nvidia's 'Conviction List' of recommended 'Strong Buy' stocks.
Nvidia is due to publish its quarterly results in just over two weeks' time, on Wednesday May 22.
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NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (55.9%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (44.1%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (55.6%), gaming (33.6%), professional visualization (5.7%), automotive (3.4%) and other (1.7%).
Net sales are distributed geographically as follows: the United States (30.7%), Taiwan (25.9%), China (21.5%) and other (21.9%).
NVIDIA CORPORATION 
