Nvidia (NVDA) just made headlines after its stock climbed nearly 2% on Wednesday, briefly pushing its market cap above the $4 trillion mark, a first for any publicly traded company. The AI frenzy clearly isn’t slowing down, and now, Goldman Sachs believes the rally may be far from over.
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In a new research report today, Goldman analyst James Schneider initiated coverage on Nvidia with a Buy rating and a $185 price target. He highlighted the company’s strong position in AI, along with growing demand from a wider range of customers. Even after the recent rally, Schneider believes Nvidia stock still has room to grow and offers an attractive entry point for long-term investors.
Why Goldman Is Bullish on Nvidia
Schneider, a 4-star rated analyst, sees Nvidia as the clear leader in accelerated computing. The company leads the GPU market and has a major edge thanks to its software tools like “CUDA,” which are widely used to build and run AI applications.
He remains impressed with Nvidia’s product leadership and its fast pace of innovation. The company continues to launch new technologies at a rapid clip, helping it stay ahead of both traditional rivals and emerging threats from custom-built AI accelerators.
The analyst also pointed out that Nvidia’s customer base is expanding, which includes large cloud providers, healthcare firms, robotics companies, and more. This broader reach adds strength to Nvidia’s long-term growth story. In addition, he noted that Nvidia is already monetizing AI, while many others are still trying to figure it out. With rising chip orders and growing demand for its software tools, Nvidia is starting to see early returns from the AI wave.
Lastly, the analyst believes the stock’s valuation remains attractive, despite Nvidia’s massive rally. He expects it to outperform peers over the next 12 months.
Is Nvidia a Good Stock to Buy?
According to TipRanks, NVDA stock has received a Strong Buy consensus rating, with 36 Buys, four Holds, and one Sell assigned in the last three months. The average Nvidia stock price target is $175.51, suggesting a potential upside of 7.75% from the current level.
