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Nvidia Stock Hits Record High After Goldman Sachs Endorsement

Nvidia Stock Hits Record High After Goldman Sachs Endorsement

Nvidia (NVDA) achieved an all-time high in stock value on Monday, propelled by Goldman Sachs’ increased price target. Analyst Toshiya Hari raised the 12-month price target to $800 from $625, maintaining a buy rating and including Nvidia on the “conviction list” of top stock picks.

Nvidia stock experienced a 4.8% rise, closing at $693.32, and reaching a peak of $694.97 during the session. Hari’s optimism stems from the anticipated benefits of “robust AI server demand and improving GPU (graphics processing unit) supply.”

The analyst revised earnings estimates for fiscal 2025 and 2026, emphasizing the sustained growth in AI data center spending. Contrary to previous assumptions, Hari predicts consistent growth in the first half of calendar year 2025, driven by large cloud service providers’ ongoing investments in Gen AI infrastructure.

Recent positive reports from Meta Platforms (META), Microsoft (MSFT), and Super Micro Computer (SMCI) support Hari’s positive outlook on Nvidia. Hyperscale cloud service providers, including Meta and Microsoft, continue substantial investments in AI-powered data centers.

Hari expresses confidence that Nvidia will outperform its rival, Advanced Micro Devices (AMD), in the AI chip market. Despite AMD’s progress, Hari believes Nvidia will maintain its position as the industry gold standard due to its innovative hardware, software offerings, and rapid pace of innovation.

The next potential catalyst for Nvidia stock is the fiscal fourth-quarter report scheduled for release on Feb. 21. Currently featured on various stock lists, including IBD 50, Leaderboard, Big Cap 20, Sector Leaders, and Tech Leaders, Nvidia remains a prominent player in the AI and GPU market.

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