New York: Nvidia soared to unprecedented heights on Monday following an upward revision of its price target by Goldman Sachs, bolstered by the anticipated earnings surge fueled by the ongoing artificial intelligence (AI) boom.
According to a Reuters report, the stock witnessed a remarkable 4% surge, soaring to $689.21, potentially adding around $70 billion to Nvidia’s market capitalization, which closed at $1.63 trillion on Friday.
Regarded as a symbol of the AI revolution, Nvidia experienced an extraordinary surge in market value in January, underscoring its dominant position in the rapidly evolving tech sphere.
Goldman Sachs analyst Toshiya Hari voiced unwavering confidence in Nvidia’s trajectory.
“We believe Nvidia will continue to set the industry standard for the foreseeable future, leveraging its robust hardware and software offerings and, critically, its ongoing innovation pace,” quoted Reuters.
Despite the substantial growth in Nvidia’s stock price, up by 39% this year, Hari anticipates further expansion opportunities.
The analyst raised the price target to $800, signaling a 21% upside from current levels, reflecting sustained optimism surrounding Nvidia’s future prospects.
The AI-driven growth narrative extends beyond Nvidia, with signs of AI monetization evident across various companies.
Hari highlighted positive strides from tech behemoths like Microsoft and Meta Platforms, alongside encouraging earnings forecasts from AI server manufacturer Super Micro Computer.
These indicators underpin Goldman Sachs’ decision to elevate full-year 2025-2026 earnings estimates for Nvidia by an average of 22%.
Anticipated robust demand for AI servers and an enhancement in graphics processing unit (GPU) supply further validate the positive trajectory envisaged for Nvidia in the forthcoming years.
While Nvidia capitalizes on the AI wave, other chipmakers with less AI exposure, such as Intel, have experienced a relative stock performance lag.
Nvidia’s dominance in the AI domain has unlocked substantial revenue streams, setting it apart in an industry where AI capabilities are increasingly indispensable.
The company is scheduled to report its results on February 21, with analysts forecasting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, based on LSEG data.
