Goldman Sachs Raises Nvidia’s Data Center Revenue Forecast by ~8%, Target Price Up to $200
In its latest research report, Goldman Sachs expects Nvidia (NASDAQ: NVDA), the leading AI chipmaker, to report better-than-expected earnings and guidance for the fiscal second quarter ending in August, benefiting from hyperscale cloud providers’ accelerated capital expenditures and sustained strong AI spending. Consequently, the firm raised its data center revenue forecast by approximately 8%. Goldman now projects Nvidia’s Q2 and Q3 data center revenues at $41.9 billion and $51.5 billion, respectively, surpassing market expectations by 2% and 8%.
The report highlights three key factors that will drive the stock’s future performance:
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The ramp-up of Blackwell chips in H2 2024 and the launch timeline of the Rubin architecture in 2026;
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The mass production timing and actual contribution of China’s H20 chips;
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The impact of H20 inventory on gross margins.
Goldman also anticipates that if the U.S. eases export restrictions in the coming months, it could add ~$20 billion in revenue for Nvidia in fiscal 2027.
Given these positive catalysts, Goldman raised Nvidia’s target price from $185 to $200, reiterating a "Buy" rating. The firm emphasized that AI-driven data center demand and Nvidia’s product innovation cadence will further solidify its leadership in high-performance computing and AI chips.
On Thursday, Nvidia’s stock surged again, rising $1.35 (0.75%) to close at a record high of $180.77, with trading volume hitting $27.249 billion—the highest in the U.S. and global markets. Its market cap surpassed $4.4 trillion ($4.4108 trillion), maintaining its position as the world’s most valuable company. Year-to-date, the stock has rallied 34.61%, outpacing the Nasdaq’s 10% gain over the same period.
