The Nvidia (NASDAQ:NVDA) gravy train stops for no one. The shares have kept on piling up the gains in 2024 (up by 83%), continuing last year’s rip and looking in no mood to slow down just yet.
And why should they? Given the company’s standing in the AI game, the stock has more room to run. That, at least, is the opinion of Goldman Sachs’ Toshiya Hari, an analyst ranked amongst the top 1% of Street stock pros, who believes that even in the face of the continued gains, the shares still show a “favorable risk/reward.”
“Despite NVDA’s YTD outperformance, we see positive EPS revisions (note our updated FY2026 [or CY2025] non-GAAP EPS estimate of $40.78 is 35% above Street consensus) driving another leg up in the stock, especially with NVDA trading at 35x or only a 36% premium to our coverage universe vs. its past 3-year median premium of 160%,” the 5-star analyst said.
Accordingly, Hari rates NVDA shares a Buy, while raising his price target from $1,000 to $1,100. If his target is achieved, investors could realize a potential total return of ~22%. It should also be noted that Nvidia keeps its place on the banking firm’s Conviction List. (To watch Hari’s track record, click here)
As in previous quarters, Hari anticipates Nvidia’s Data Center segment’s performance in its fiscal first quarter (April quarter) and its FY2Q (July) guide will be boosted by the sustained demand for AI-related Computing and Networking. This is down to the consistently positive feedback from various players in the AI industry, such as cloud service providers, hyperscalers, ODMs, and other component suppliers. Additionally, the introduction of several new products, including the H200 in FY2Q and the Spectrum-X and Blackwell later in the fiscal year, should also contribute to growth. As such, Hari now predicts sequential growth rates of 10%, 17%, and 5% in Nvidia’s Data Center business for FY2Q/3Q/4Q respectively, compared to his previous estimates of 10%, 15%, and 0%.
Turning now to the rest of the Street, where Hari is just one of many NVDA bulls. He joins 38 others with Buy ratings while 2 additional Holds can’t detract from a Strong Buy consensus view. The average price target currently stands at $1,008.30, making room for 12-month returns of 11.5%. (See Nvidia stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
