Goldman Sachs believes Nvidia could rise by another 21 percent
The reason Goldman Sachs believes Nvidia could rise by another 21 percent would be that the tech company will steadily increase revenue for its data center division until the first half of 2025.
So far this year, Nvidia shares have already risen by 37%, accumulating a return of almost 200% over the past 12 months. Fortunately for its investors, the bullish trend may continue, according to Goldman Sachs.
In a note published on Monday, the investment bank raised the target price for Nvidia shares from USD 625 to USD 800, which would represent a 21 percent increase from the current price.
The reason would be that the tech company will steadily increase revenues for its data center division until the first half of 2025 thanks to “continued spending on generative artificial intelligence infrastructure by major cloud service providers.”
“We are encouraged by various data from the broader ecosystem pointing to continued strength in demand for accelerated computing,” noted senior analyst Toshiya Hari.
The executive later clarified that although Nvidia faces strong competition against AMD, it will remain “the industry’s gold standard for the foreseeable future” for its powerful hardware, complementary software products and rapid pace of innovation.
In fact, Hari expects Nvidia to ramp up production of its next-generation H200 chip in the second quarter of 2024, while the B100/B40 would begin development in the second half of the year and the X100/X40 in 2025.
“Our recent conversations with companies across the supply chain suggest that GPU manufacturing capacity will increase sequentially in Q4 2024, with a possible acceleration of sequential growth in Q3,” the specialist concluded.
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