Key Takeaways:
Goldman Sachs reiterated its buy rating on Nvidia Corp. with a $285 price target, citing stronger AI PC ambitions, sustained data center leadership and growing adoption of agentic AI.
"The Vera Rubin platform remains on schedule, and we see further upside driven by AI PC adoption and enterprise agentic AI deployments," James Schneider, analyst at Goldman Sachs, said.
The $285 target implies about 33% upside from Nvidia's close of $214.25 on Wednesday. The stock has gained 67% over the past 12 months but has lagged some peers, trading at a discount to its historical multiple, according to Goldman.
The reiteration comes after Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion, topping consensus by $2.8 billion. Data center revenue surged 92% year-over-year to a record $75.2 billion. The company guided second-quarter revenue to $91 billion, nearly $5 billion above Wall Street estimates, excluding any contribution from China.
Goldman's Schneider raised his 12-month price target to $285 from $250 in late May, applying a 30x multiple to a normalized earnings estimate of $9.50. The firm now projects fiscal 2027 revenue of $410.9 billion, implying 90% annual growth, and fiscal 2028 revenue of $635.1 billion.
The broader analyst consensus on Nvidia stands at Buy, with 51 of 54 analysts rating the stock a buy or strong buy, according to MarketBeat data. The average 12-month price target is $305.38, with a high of $500 and a low of $218.
Goldman's central argument rests on improving unit economics for AI workloads. Nvidia is driving over 70% annual token cost reductions while token prices stabilize or rise, structurally improving gross margins for customers running inference at scale. That margin expansion makes the trillion-dollar hyperscaler buildout economically rational rather than speculative, the firm said.
The bank also flagged Nvidia's improved capital allocation as a confidence signal. The company announced an $80 billion buyback authorization alongside earnings, complementing $39 billion already remaining. In fiscal 2026, Nvidia returned $41.1 billion through buybacks and dividends.
The reiteration reinforces institutional confidence in Nvidia's trajectory. Investors will watch for further hyperscaler capital expenditure updates and the Vera Rubin platform launch timeline as the next catalysts for the stock.
This article is for informational purposes only and does not constitute investment advice.
