Nvidia (NASDAQ: NVDA) has so far proven to be at the very top of the ladder when it comes to making cutting-edge hardware for the burgeoning artificial intelligence (AI) sector and has, throughout 2023, benefitted hugely from it on the stock market.
The semiconductor giant’s stock received another boon when the investment bank and financial services firm Goldman Sachs (NYSE: GS) raised its price target from $625 to $800 while maintaining a “buy” rating.
The bank’s analysts backed their decision primarily by citing the strength of Nvidia’s AI business and stated they no longer forecast a revenue drop in 2024 for data centers.
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The chipmaker boasts an impressive lineup of chips – including the new H200 – and retains a dominant position in its industry.
Furthermore, its biggest black mark at press time – ongoing struggle stemming from U.S.-imposed export restrictions to China and the reluctance of Chinese companies to take the complaint and downgraded hardware – appears not to worry investors, and Nvidia’s leadership itself previously stated that it doesn’t pose a serious risk to their business.
Nvidia stock surges on price target upgrade
The target update proved enough to drive the company’s stock 4.79% up to $693.32 in a day – and 1.25% in the extended session – and saw Nvidia rise to a new high, adding approximately $75 billion to its already impressive $1.7 trillion market cap.
Generally, the company has been surging for more than 52 weeks by the time of publication. Throughout 2023, the firm’s stock rose more than 200%, and the trend continued into 2024 with NVDA 43.94% in the green year-to-date (YTD).
Goldman’s not the highest target for Nvidia stock
While Goldman’s updated price target constituted an upside of more than 20% for the company when it was announced, it does not represent the highest the blue-chip technology stock has been given.
In late November 2023, Rosenblatt analyst Hans Mosesmann updated his forecast for Nvidia to $1,100 while, much like Goldman, citing the AI boom as a major reason for the bullishness. Should Mosesmann’s prediction come true, Nvidia’s market cap would surge another $1 trillion within 12 months.
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