Nvidia’s Stock Rises 4%; Goldman Sachs Ups Price Target to $800

Shares of US semiconductor giant Nvidia rose more than 4% in trading on the 5th, hitting a new high. Photograph taken in October 2023 (2024 Reuters/Ann Wang)

[Reuters]- Shares of US semiconductor giant Nvidia (NVDA.O), opens a new tab rose more than 4% in trading on the 5th, reaching a new high. Goldman Sachs raised Nvidia’s price target to $800, expecting the artificial intelligence (AI) boom to boost profits.

Nvidia’s stock price at one time was $694.97. Market capitalization is expected to increase by about $70 billion. At the end of the previous business day, the market capitalization was $1.63 trillion.

Nvidia’s stock price is up about 39% since the start of the year. Although its price-to-earnings ratio (PER) of 31.4 times is higher than the industry average of 22.9 times, Goldman analyst Toshiya Hari believes there is still room for further growth. “We are confident that NVIDIA will remain the gold standard in the industry for the foreseeable future, especially given the pace at which we continue to innovate.”

The company’s price target of $800 is the third-highest among brokerages that cover Nvidia, predicting a roughly 21% upside from current stock levels.

Goldman also raised its 2025-26 earnings forecast for Nvidia by an average of 22%. In addition to strong demand for AI servers, he pointed to signs of improving GPUs (image processing semiconductors) supply.

Nvidia will announce its fourth quarter 2023 financial results on the 21st of this month. Analyst estimates compiled by LSEG are for earnings per share of $4.51 and sales of $20.19 billion.

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