(Reuters) – Nvidia’s stock reached a new peak after Goldman Sachs raised its price target, expecting a significant boost in earnings from the artificial intelligence (AI) industry. The share price rose by approximately 4% to $689.21, potentially adding $70 billion to the company’s market capitalization. As of the previous Friday, Nvidia was valued at $1.63 trillion. The unparalleled growth in the stock price, up about 39% this year, has led to a higher relative cost of ownership compared to its peers. Currently, Nvidia’s shares trade at 31.4 times the company’s forward earnings estimate, while the industry average stands at 22.9. However, Goldman Sachs analyst Toshiya Hari anticipates further growth, stating that Nvidia will likely remain the industry benchmark due to its strong hardware and software offerings, as well as its continuous innovation. Goldman Sachs analysts have raised their price target for Nvidia to $800, the third highest among U.S. analysts covering the stock, representing a projected 21% increase from the current levels, as indicated by LSEG data. This is a significant increase from their previous price target of $625. Additionally, the bank has raised its full-year 2025-2026 earnings estimates for Nvidia by an average of 22%, pointing to strong AI server demand and improved graphics processing unit (GPU) supply. Hari also highlighted the monetization of AI by companies like Microsoft and Meta Platforms, along with the positive earnings outlook from AI server maker Super Micro Computer. While Nvidia has seen considerable revenue growth during the AI boom, chipmakers less involved in AI, such as Intel, have experienced slower stock performance. Nvidia is expected to announce its results on Feb. 21, with analysts projecting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, according to LSEG data. (Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty and Shweta Agarwal)
