On Monday, Goldman Sachs maintained its Conviction Buy rating and a $1,200.00 price target for NVIDIA Corporation (NASDAQ:NVDA), following the company's CEO Jensen Huang's keynote at Computex 2024 in Taiwan on June 2. The firm stands firm on its stance even without making any estimate changes, highlighting that the announcements at the event underscore NVIDIA's position as the accelerated computing industry standard.
The keynote address by NVIDIA's CEO was seen as a reinforcement of the company's dominance in the industry, as noted by Goldman Sachs. The firm highlighted NVIDIA's successful transition to a one-year product cadence across Compute and Networking, attributing this to the company's significant investment in research and development. This strategy is expected to sustain NVIDIA's competitive edge.
Goldman Sachs also pointed out the "virtuous cycle" rooted in NVIDIA's large GPU installed base, which has been growing over the past decades. This foundation is seen as a key factor in the company's continued leadership in the market.
The firm remains confident that NVIDIA will keep outperforming, with expectations of positive revisions to Street earnings per share (EPS). Goldman Sachs' endorsement of NVIDIA's stock is based on the belief that these revisions will fuel further gains.
In summary, NVIDIA's consistent strategy and strong market position have led Goldman Sachs to reiterate its Conviction Buy rating and $1,200.00 price target, anticipating the company's ongoing success in the accelerated computing sector.
InvestingPro Insights
In light of Goldman Sachs' strong endorsement of NVIDIA Corporation (NASDAQ:NVDA), recent data from InvestingPro reinforces the company's robust financial position. NVIDIA boasts an impressive Piotroski Score of 9, indicating top-tier financial health, which supports Goldman Sachs' confidence in the company's market leadership. Analysts are also anticipating sales growth in the current year, with 37 analysts having revised their earnings upwards for the upcoming period, aligning with the positive outlook presented at Computex 2024.
InvestingPro Data showcases NVIDIA's significant revenue growth over the last twelve months as of Q1 2025, with a staggering 208.27% increase. The company's gross profit margin stands at an impressive 75.29%, highlighting efficient operations and strong profitability. Furthermore, NVIDIA's EBITDA growth has soared by 709.11%, demonstrating exceptional operational performance.
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