On Wednesday, Goldman Sachs analysts maintained a Buy rating and a $1,000 price target on Nvidia (NASDAQ:NVDA), following positive insights gathered from the company’s Financial Analyst Q&A session, held on Tuesday during its GTC developer conference.
“While the key points shared by Mr. Huang in his speech and management’s responses to questions were consistent with what was conveyed in yesterday’s keynote, there was additional context — mostly constructive in nature — provided regarding the Blackwell platform,” analysts said.
Among other things, Huang stressed Nvidia's role as a comprehensive data center solutions provider, covering software, compute, and networking elements, rather than just a discrete GPU supplier, the analysts explained.
The company’s CEO highlighted that Blackwell represents this holistic approach with enhancements such as the 5th-generation NVLink, networking solutions like Quantum-X800 InfiniBand and Spectrum-X800 Ethernet switches, and other features including liquid cooling, all complementing the primary GPU function.
“With the GB200 (FP4) expected to deliver ~30x the inference performance vs. the H200 (FP8), we believe Nvidia’s competitors (i.e. Intel, AMD, ASIC providers) will find it increasingly difficult to compete, unless they can out-innovate Nvidia going forward,” the analysts wrote.
The analysts also highlighted that Nvidia remains well-positioned to dominate the growing demand in data center acceleration, tapping into a potential $250 billion market.
This bullish stance is bolstered by Nvidia's strengths in accelerated computing and a strategic system-level approach. Moreover, expenditures on Generative AI and AI by sovereign states could further increase this opportunity.
Meanwhile, Nvidia's management reports improved preparation for the Blackwell ramp-up, especially compared to the previous year, indicating robust supply chain readiness.
“Based on recent industry conversations, one of the few areas that concern us from a supply chain perspective is HBM (High Bandwidth Memory) whereas supply for advanced packaging (or CoWoS), which had been the key bottleneck the past ~12 months, appears to be improving,” analysts noted.
When it comes to the near-term outlook, the sustained demand for Hopper products (such as H100, H200, GH200), even as customers anticipate the upcoming Blackwell launch, “is a constructive sign,” they added. It also shows that customer purchases of data center compute “is based on real, near-term demand as opposed to ‘excess ordering’.”