On Wednesday, Goldman Sachs (NYSE:GS) reaffirmed its Conviction Buy rating on NVIDIA (NASDAQ:NVDA), maintaining a $1,200.00 price target for the company's shares. The endorsement follows a group meeting with NVIDIA's Founder, President, and CEO Jensen Huang at Computex 2024 in Taiwan.
During the meeting, Huang shared insights into the company's strategic direction, emphasizing NVIDIA's role as a platform provider for accelerated computing rather than merely a chip manufacturer. He highlighted the shift towards this technology and discussed NVIDIA's advantages in scale and supply chain sustainability.
Goldman Sachs supports the optimistic outlook for NVIDIA, citing its pivotal position in the industry, particularly in the development and deployment of General AI. The firm believes NVIDIA sets the industry standard for accelerated computing, which is critical for advancing AI technologies.
The financial institution projects significant growth for NVIDIA, noting that its own non-GAAP EPS estimate for the calendar year 2025/fiscal year 2026 stands at $41.58, which is 21% higher than the consensus forecast by FactSet. This bullish estimate underscores Goldman Sachs' expectation of NVIDIA outperforming market predictions.
NVIDIA's focus on accelerated computing and AI development continues to attract positive attention from analysts, positioning the company as a key player in the tech industry's future. Goldman Sachs' reiterated rating and price target reflect confidence in NVIDIA's trajectory and market p otential.
In other recent news, Nvidia Corporation (NASDAQ:NVDA) has reached a significant milestone, achieving a market capitalization of $3 trillion, bolstered by the escalating competition among companies to lead in artificial intelligence (AI) technology. This achievement underscores Nvidia's substantial growth, particularly in the field of specialized AI chips.
On a related note, Hewlett Packard Enterprise Co (NYSE:HPE) has outperformed Wall Street's third-quarter revenue forecasts, largely due to the increasing demand for its AI-optimized servers. HPE's market value is expected to rise by about $3 billion if the premarket gains are maintained.
In addition to these developments, Nvidia's market valuation is nearing the $3 trillion mark, potentially surpassing Apple (NASDAQ:AAPL) to become the world's second most valuable company. This increase in Nvidia's value comes ahead of its planned ten-for-one stock split. In the meantime, Hewlett Packard Enterprise has projected its third-quarter revenue to exceed Wall Street forecasts, attributing the positive outlook to the strong demand for its AI servers.
These recent developments highlight the growing importance of AI technology in the tech industry, as well as the key role companies like Nvidia and Hewlett Packard Enterprise play within this space.
Analysts from Bernstein suggest a period of robust shipments for HPE and its peer Dell Technologies (NYSE:DELL) in the upcoming quarters, contingent on customer willingness to accept earlier deliveries. These projections, coupled with the recent achievements of Nvidia and HPE, indicate a promising future for AI technology.
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