Though some uncertainty over the sustainability of Nvidia’s (NASDAQ: NVDA) rise has persisted for months, experts at the banking giant Goldman Sachs (NYSE: GS) have recently come out in full support of the blue-chip chipmaker.
Indeed, Goldman’s analyst Toshiya Hari believes that, despite some setbacks with, for example, the Blackwell chip, Nvidia is likely to report significantly stronger figures than anticipated, largely thanks to its operational leverage and data center growth.
Additionally, the banking giant is recommending buying NVDA shares ‘with conviction’ as, should its optimism about the upcoming report prove justified, the stock is likely to experience a major price rise in the near future.
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Nvidia stock price chart
The endorsement comes after a time in late July and early August, when Nvidia stock appeared on shakier ground than it has been in months. Indeed, the semiconductor giant experienced a significant downturn, which sent it well below the price it stood at the time of the June stock split and, at one point, even below $100.
More recently, however, NVDA shares have entered a major recovery in the leadup to the upcoming earnings report – scheduled for August 28 – and have erased all the recent losses to be 4.72% in the green in the 30-day chart with a press time price of $129.31.
Experts broadly bullish on Nvidia stock
Other analyst firms corroborate the Nvidia bull case. There is an overall consensus that the firm will beat the earnings forecasts and broad expectations that its strong growth will continue throughout the upcoming 12 months.
Wedbush’s Dan Ives, for example, opined on August 11 that the earnings will prove a ‘drop the mic’ moment for Nvidia and will lead to the continuation of the ongoing artificial intelligence (AI) boom.
Given that the earnings-per-share (EPS) forecast for the August 28 publication is only slightly above the latest reported figures – standing at $0.59 compared to Q2’s $0.58 – Nvidia is indeed likely to perform better than expected.
On the other hand, the situation may also be riskier than expected, given that even a slight earnings miss would also signal that the semiconductor giant has either stagnated or declined between the quarters, with both situations boding ill for NVDA’s stock market performance.
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