Nvidia Data Center guidance points to solid AI spending, says Goldman Sachs

Goldman Sachs keeps a Buy rating and $240 price target on Nvidia (NVDA) in a “First Take” note after the company’s Q3 results and Q4 guidance. Investor expectations had been somewhat elevated heading into the quarter, given upward CapEx revisions from hyperscalers, while the bar for stock performance has been lowered somewhat, with shares pulling back 6% ahead of the print, the analyst tells investors in a research note. Nvidia’s Q4 Data Center segment guidance points to a solid AI spending environment, and is also positive for the firm’s digital semiconductor coverage including Broadcom (AVGO) and AMD (AMD), Goldman added.