Goldman Sachs Sticks with 'Buy' Rating on Nvidia Amid AI Growth Outlook

Goldman Sachs reaffirmed its 'Buy' rating on Nvidia (NVDA) stock, setting a price target of $300.00 per share. Analyst James Schneider cited the company's artificial intelligence market outlook and supply dynamics as key factors in his assessment.

The chip giant has a market capitalization of $5.27 trillion and is currently trading below its InvestingPro Fair Value. This suggests potential upside for investors, with Nvidia's valuation appearing attractive due to a PEG ratio of just 0.22.

Nvidia itself estimates that AI represents a $3 trillion to $4 trillion total addressable market opportunity by 2030. The company attributes this growth to the shift from retrieval-based computing to generative computing, as well as the slowing of Moore's Law which increases the value of its hardware and networking stack.

Nvidia's CEO Jensen Huang acknowledged broad-based upstream supply constraints but reaffirmed his expectation for approximately 70% year-over-year growth in calendar year 2027. He highlighted coding as a key application of generative AI and sees cybersecurity as a major opportunity, with the company providing financial guarantees and commitments to support the AI ecosystem.