NEW YORK – Goldman Sachs has identified a select group of stocks poised for significant gains amid ongoing market volatility, extending beyond its continued bullish stance on Nvidia. The investment bank’s analysts highlight opportunities in diverse sectors, from pharmaceuticals to financial services, signaling a broader view of compelling investment prospects than simply focusing on the artificial intelligence boom.
While acknowledging Nvidia’s continued strength – particularly as the central player in the AI revolution, according to analyst James Schneider – Goldman Sachs’ recent recommendations encompass a wider range of companies. The firm believes investors should consider Teva, Philip Morris, S&P Global, and Apollo Global Management alongside the AI leader.
Teva, the pharmaceutical company, has seen its stock double in the past year, but Goldman Sachs analyst Matt Dellatorre argues that concerns about overvaluation are premature. Dellatorre and his team contend that the company’s outlook has fundamentally improved, rendering historical valuation comparisons less relevant. “While we appreciate this concern from a risk-reward perspective we highlight that the outlook for the company today is now fundamentally different from what it was just a few years ago — and thus comparisons to historical multiples are increasingly less relevant,” Dellatorre wrote in a recent note. He raised his price target to $45 per share, anticipating a “rapidly ascending earnings trajectory” fueled by a robust pipeline. Shares are already up over 8% this year.
Philip Morris, the tobacco giant, is also attracting attention. Analyst Bonnie Herzog describes the company as “transforming into a faster growing and more profitable business – an earnings compounder with an attractive valuation.” Goldman Sachs is particularly impressed with management’s aggressive outlook for , noting the company’s ability to deliver high single-digit topline growth alongside impressive double-digit earnings per share (EPS) growth. Shares have climbed nearly 18% so far this year.
S&P Global, despite a recent 7% pullback, is also flagged as a compelling buy. Analyst George Tong points to the company’s “strong AI positioning, conservative guidance with upside & durable long-term earnings power.” While Tong lowered his price target to $498 per share from $555, he maintains confidence in S&P Global’s ability to navigate disruption from artificial intelligence. He anticipates durable mid-to-high single-digit organic revenue growth driven by expansion into private markets and decentralized finance, as well as strengthening enterprise capabilities. The stock is currently down 22% year-to-date.
Goldman Sachs’ enthusiasm for Nvidia extends beyond its role in the AI infrastructure buildout. Schneider believes the firm’s strength lies not only in its graphics processing units (GPUs) but also in its expanding software ecosystem and consistent innovation. Despite a more than 20% increase in its stock price this year, Goldman Sachs set a price objective of $185 per share, suggesting further upside potential.
Broadcom also receives a strong endorsement from Goldman Sachs, particularly for its emerging role in custom AI chips and infrastructure software. The firm predicts that AI-related revenue will account for over 40% of Broadcom’s total revenue by . Schneider highlights Broadcom’s strong relationships with hyperscale cloud providers and its stable profitability as key strengths, assigning a price target of $315.
The broader context of Goldman Sachs’ recommendations suggests a shift in the AI investment cycle. The initial phase, characterized by substantial infrastructure spending, is giving way to a focus on performance, cost-efficiency, and software integration. This transition, as noted in a recent report, is expected to create both opportunities and challenges across the semiconductor landscape.
Apollo Global Management is also highlighted as having “healthy upside potential to numbers in 2026/27 which we view as relatively insulated from industry-level risks that have pressured the alts stocks in recent months.” The firm is currently trading at less than 14 times its share-based compensation-burdened 2027 earnings, presenting an attractive setup for investors.
Goldman Sachs’ assessment underscores the evolving dynamics of the AI market. While the initial focus was on building the necessary infrastructure, the emphasis is now shifting towards optimizing performance and finding ways to monetize these investments. This transition favors companies like Nvidia and Broadcom, which are already heavily involved in both hardware and software development, but also opens doors for companies like Teva, Philip Morris, and S&P Global to capitalize on the broader economic benefits of AI and technological advancements.
