Nvidia Stock Price Target Raised by Goldman Sachs to $300

Nvidia's stock price target has been raised by Goldman Sachs to $300 from $285 while maintaining a Neutral rating on the shares. The current trading price is $209.66, which according to InvestingPro data, is undervalued based on comprehensive Fair Value analysis.

The firm expects the stock to hold its gains following a strong quarter with calendar year 2027 guidance that was well ahead of the Street. Analyst James Schneider stated that the guidance was consistent with the most optimistic buy-side expectations despite elevated expectations from recent upward capital expenditure revisions from hyperscalers.

Goldman Sachs sees a clearer path for the stock to outperform the market over the coming months driven by three key factors. Firstly, Nvidia can deliver upside to its forecast from a higher revised base of 70% growth in calendar year 2027 as it works with datacenter and supply chain partners to close the gap to its unconstrained demand forecast of over 100% revenue growth.

The company's medium-term gross margin guidance of 72% to 73% for calendar year 2027 is likely to address investor concerns on input costs and potentially serve as a clearing event for the stock. Nvidia's current gross profit margin stands at an impressive 74.15%, while the stock trades at a PEG ratio of just 0.29, indicating attractive valuation relative to growth prospects.