The actions of Nvidia (NVDA.O) hit a new peak on Monday after what Goldman Sachs to raise its price target for the stock of the chip maker, anticipating a significant boost in its profits thanks to the rise of artificial intelligence (AI). Thus, before the market opens, The firm’s shares rise 1.4%, which adds to the 11% achieved in the last five days.
Shares rose about 4% at Monday’s close to $689.21 and appeared poised to add about $70 billion. to the company’s market capitalization. Nvidia was worth $1.63 billion at Friday’s close.
Nvidia thus establishes itself as the wunderkind of the AI fever and experienced a record monthly increase in its market value in January.
The meteoric growth in stock prices, which has already risen around 39% so far this yearhas made it more expensive compared to its peers. Nvidia shares are trading at 31.4 times the company’s future earnings estimate, compared to the industry average of 22.9.
Nvidia: what Goldman Sachs said
However, Goldman Sachs analyst Toshiya Hari sees more room for growth. “We believe Nvidia will remain the industry’s gold standard for the foreseeable future, given its strong hardware and software offerings and, more importantly, the pace at which it continues to innovate“Hari said.
The bank also raised its full-year 2025-2026 earnings estimates for Nvidia by 22% on average, citing signs of strong demand for AI servers and an improvement in the supply of graphics processing units (GPUs). Hari pointed to signs of AI monetization by companies such as Microsoft (MSFT.O) and Meta Platforms (META.O), as well as positive earnings prospects from AI server maker Super Micro Computer (SMCI.O).
Although Nvidia has unlocked billions in revenue in the wake of the AI craze, other chipmakers that are not as deeply involved in making AI chips, such as Intel (INTC.O), have seen their stocks lag. .
Nvidia is scheduled to report results on February 21, and according to data from LSEG, fourth-quarter earnings per share are expected to be $4.51 and revenue to be $20.19 billion.
Source: Ambito
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