On Oct 14, Goldman Sachs (GS, Financial) raised the target price for Nvidia(NVDA, Financial) to $150 from $135, reflecting the semiconductor giant's strong positioning to dominate the AI space. This update comes as the stock market begins to soar, with Nvidia's valuation moving closer to becoming one of the world's most valuable companies.
Nvidia's market capitalization has increased by around $780 billion since early September, surpassing Microsoft's market cap and nearing Apple's $3.46 trillion mark. This growth is primarily due to Nvidia's leading position in the global AI chip and processor market, which is experiencing a surge in investments as the world embraces AI.
Analyst Toshiya Hari from Goldman Sachs attributed the revised price target to the increasing complexity of AI workloads and Nvidia's strategic initiatives to meet this demand. Nvidia's new developments will likely support the growing need for AI chips from hyper scalers Microsoft (MSFT, Financial) and Alphabet (GOOGL, Financial), which are expanding their AI usage.
Furthermore, expectations are high that Nvidia's new Blackwell platform and the continued success of its Hopper GPUs will boost sales. These trends suggest that Nvidia could capture a larger share of U.S. cloud companies' capital expenditures, which are expected to rise significantly in the coming years.
Goldman Sachs' update on price targets reflects a positive outlook on Nvidia's strategic position in the AI market, especially on the upcoming Blackwell chip and its role in the technology sector.
