Goldman Sachs: Maintains "Buy" rating on Nvidia, 12-month target price $200

On August 28, Jin10 reported that Goldman Sachs stated in its latest report that Nvidia (NVDA.O)'s latest earnings report and guidance for the next quarter, while robust and generally in line with Wall Street expectations, may still struggle to meet the previously high market expectations, which could lead to downward pressure on its stock price in the short term. Goldman Sachs analysts believe that the market has largely priced in the growth potential brought by its new generation Blackwell architecture chips. However, Goldman Sachs still maintains a “Buy” rating for Nvidia and has set a 12-month target price of $200. This target price is based on an estimated standardized earnings per share of $5.75 and a price-to-earnings (P/E) ratio of 35. The report also pointed out four key downward risks that investors need to be aware of: a slowdown in AI infrastructure spending, intensified competition leading to market share loss, competition causing margin erosion, and supply chain limitations.