note: image is Paulette Goddard, not GS analyst.
From TheStreet, February 8:
The investment banks updated its projections for earnings on Feb. 25.
Nvidia shareholders are eagerly anticipating the AI-chip giant’s quarterly earnings results on February 25. The stakes are particularly high, given mounting competition from AMD and Broadcom, yet Goldman Sachs thinks Nvidia will deliver a $2 billion revenue surprise.
Analysts at the 157-year-old investment bank, regarded as one of the best on Wall Street, believe the company’s fiscal fourth-quarter revenue will come in at $67.3 billion. It also expects Nvidia to outpace estimates on the bottom line.
“We expect Nvidia to deliver a ~$2bn revenue beat in 4Q, and we stand 8% above the Street for 1Q revenue,” wrote the analysts in a research note shared with TheStreet. “Our 4Q and 1Q EPS estimates are 5% and 9% above the Street.”
The forecast is encouraging for investors, including me (I’ve owned Nvidia since 2017, when chip demand surged on cryptocurrency mining). Nvidia’s share price has fallen 13% from its peak last fall.
Still, Goldman Sachs raised concerns that investors may already have priced in a strong quarterly result, shifting the focus from recent performance to Nvidia’s guidance for 2026 and 2027.
Nvidia’s bar has been set high
In 2022, the launch of OpenAI’s ChatGPT uncorked a flurry of AI chatbot development, kick-starting a massive surge in demand for Nvidia’s high-powered, next-gen graphics processing units, or GPUs. It was a move few saw coming, and many investors chased the stock higher as the company delivered earnings beats and higher guidance quarter after quarter.Now, most portfolios boast Nvidia, leaving far less money on the sidelines to drive prices higher.
“We believe upside to Nvidia’s CY26 estimates is largely priced into the stock at current levels, and stock price outperformance will hinge on revenue visibility into CY27,” wrote Goldman Sachs.
It may take more than just higher revenue and earnings last quarter to convince investors to buy more. They’ll need to see real conviction that demand is locked in for this year, and that the launch of its latest chip, Vera Rubin, goes off without a hitch.
Goldman Sachs’ Nvidia stock price target models 35% upside
Several catalysts could drive Nvidia shares higher, and Goldman Sachs thinks they justify a $250 stock price target, which is 35% above the Feb. 6 closing price.Nvidia catalysts for 2026....
....MUCH MORE
The stock is changing hands at $189.40 down $0.63 (-0.33%)
