Investing.com — Analysts at Goldman Sachs have raised their price target for Nvidia (NASDAQ:), citing the potential for artificial intelligence to help boost the graphics card maker’s performance.
In a note to clients, the analysts hiked their 12-month price target to $495 from $440 and reiterated their “Buy” rating of the stock.
In May, Nvidia predicted that it will see elevated demand for its data center chips, which play a key role in powering the generative AI technology that has seen a significant spike in popularity this year. Generative AI, which is used by tools such as OpenAI’s ChatGPT, uses past data to create new content such as text, images, and programming code.
The Goldman Sachs analysts noted that this “step-function increase” in expected demand for data center chips suggests the company is on the verge of a new phase of growth driven by the “emergence and proliferation of [g]enerative AI.”
They added that they are raising their estimates for Nvidia’s revenue and non-GAAP earnings per share in its 2025-2026 fiscal year, arguing that there is “significant runway” for its data center business.
Shares in Nvidia inched higher in premarket trading on Monday.
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