Goldman Sachs is growing increasingly optimistic about Nvidia’s performance, raising its 12-month price target on the semiconductor giant from $185 to $200.
The revised target, published in a Thursday note, suggests more than 11% upside from Nvidia’s previous closing price on Wednesday.
The investment bank has also reiterated its “buy” rating on the stock, reflecting continued confidence in the company’s fundamentals and growth trajectory.
Nvidia shares have already gained nearly 34% year-to-date in 2025, supported by strong demand for its AI-focused chips and growing interest in its next-generation product roadmap.
Despite the stock’s sharp rise, Goldman analyst James Schneider believes Nvidia remains well-positioned to exceed expectations in its upcoming fiscal second-quarter earnings report, scheduled for August 27 after the market close.
Key earnings drivers: Blackwell, China, and margins
In his note, Schneider laid out three key areas investors should watch closely when Nvidia reports its results: the ramp-up of its Blackwell chips in the second half of the year, the timeline for the launch of its next-generation Rubin architecture in 2026, and developments in China-related sales, particularly the H20 chip line.
“We expect Nvidia to deliver a clean beat-and-raise quarter, with the stock reaction likely hinging on the level of upside to guidance and impact from China (if any) — and we increase our estimates,” Schneider wrote.
The company’s performance in China remains a potential swing factor for investor sentiment.
The H20 chip, developed to meet US export controls, is being closely monitored for its ramp-up timeline and revenue contribution.
Schneider noted that Nvidia’s update on China revenues and any revisions to its gross margin guidance—especially related to previously reserved H20 inventory—could provide upside surprises for investors.
Market eyes $45.7 Billion revenue estimate
Analysts surveyed by FactSet currently expect Nvidia to report earnings per share of $1 on revenue of $45.7 billion for the fiscal second quarter.
With expectations already elevated, Nvidia will need to deliver meaningful upside or forward-looking guidance to satisfy investors.
Goldman Sachs’ bullish stance is rooted in Nvidia’s track record of surpassing Wall Street estimates and its strong positioning in the AI and data center markets.
The introduction of the Blackwell architecture is seen as a major catalyst for continued momentum in the latter half of the year.
Schneider concluded that while investor expectations are high, Nvidia appears capable of meeting or exceeding them.
The analyst’s increased estimates suggest confidence not only in the upcoming earnings results but also in the company’s ability to maintain its leadership in the high-performance computing space.
Nvidia shares have surged 29% in the year so far.
Nvidia’s upcoming quarterly results announcement is highly anticipated and will be monitored by Wall Street as a potential indicator for the broader tech and AI sectors.
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