On Tuesday, Goldman Sachs updated its outlook on NVIDIA (NASDAQ:NVDA), raising the price target to $1,000 from the previous $875, while maintaining a Conviction Buy rating on the stock. The adjustment follows a keynote speech by NVIDIA's CEO at the GTC 2024 event, which took place on Monday.
During the event at the SAP Center in San Jose, California, NVIDIA's Founder and CEO, Jensen Huang, introduced the next-generation Data Center GPU platform, Blackwell, which is expected to offer substantial performance improvements over the current H100 model. The new platform is anticipated to deliver up to four times faster training and thirty times faster inference capabilities.
The keynote also highlighted several strategic partnerships across various sectors including Enterprise Software, Healthcare, Industrial, and Chip Design. Additionally, new NVIDIA microservices, such as NIM and CUDA-X, were announced, along with progress in Automotive and Robotics through ongoing initiatives and growing customer engagement.
Goldman Sachs noted NVIDIA's ability to innovate at the data center scale, its expansive ecosystem, and the company's strong position in supporting the development of Generative AI infrastructure. These factors contribute to NVIDIA's compelling investment profile according to the firm.
Furthermore, based on recent industry discussions indicating robust demand and supply conditions, Goldman Sachs has increased its revenue and non-GAAP EPS (excluding SBC) estimates for NVIDIA's fiscal years 2026-27 by 10% and 11%, respectively. The firm reiterated its confidence in NVIDIA's prospects with the raised 12-month price target.
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