Sometimes it’s that little bit of analyst perspective that can give a stock some legs. Chip stock Nvidia (NASDAQ:NVDA) got a boost from Goldman Sachs, which added Nvidia stock to its conviction list. That move helped push shares of Nvidia up over 3% in Monday morning’s trading session, but there was more going on than that.
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Goldman Sachs took an old favorite saying and declared that Nvidia would be selling shovels in the ongoing AI gold rush. For those not familiar, it’s a metaphor that draws from the gold rush era of United States history and refers not to gold miners but rather to those who supply gold miners with items needed to mine gold. It’s a somewhat slower gain, but it’s also more reliable because as long as someone’s mining, they need a shovel to do it. That makes Nvidia a choice pick in the market. Goldman Sachs asserted that Nvidia would remain near the top for some time to come thanks to its “competitive moat” and “…the urgency with which customers are developing and deploying increasingly complex AI models.”
Yet, that’s not all that’s going on for Nvidia; it recently suffered an early-morning raid from French authorities. Elements of the French Competition Authority (FCA) targeted a company in what it described as the “graphics card sector,” which was later determined to be Nvidia. This appears to be part of a larger move on the French government’s part—and indeed, on a growing number of government agencies’ part—to address issues of anti-competitive behavior and growing vitality among tech-sector stocks. Given that the government has also denied that investigation, though, that’s likely a major reason it’s not weighing harder on Nvidia’s performance today.
What is a Fair Price for Nvidia Stock?
Despite this, analysts are still very much on Nvidia’s side. Currently, Nvidia stock is consensus-rated as a Strong Buy, supported by 39 Buy ratings and one Hold. Further, Nvidia stock also offers 41.74% upside potential thanks to an average price target of $639.82.