Nvidia stock price forecast: Goldman Sachs sees potential for another 20% rally

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Written on Jul 10, 2023

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Goldman Sachs analyst says Nvidia Corp could hit $495 per share.
Toshiya Hari's bullish view is based on pivotal role it plays in Gen AI.
Nvidia stock has nearly tripled already since the start of this year.

Nvidia Corp (NASDAQ: NVDA) has nearly tripled this year already but a Goldman Sachs analyst still sees further upside ahead in this semiconductor behemoth.

Nvidia stock has upside to $495

On Monday, Toshiya Hari maintained his “buy” rating on the chipmaker and raised his price target to $495 that signals a close to 20% upside from here.

He recommends investing in Nvidia stock primarily to ride the wave of artificial intelligence.

Nvidia has been a key enabler and beneficiary of traditional AI. Recent step-function increase in data centre revenue outlook suggests it has entered a new phase of growth driven by Gen AI.

Nvidia GPUs are pivotal to training large language models which alone could be a $13 billion revenue opportunity (base case) for the California-based company, as per the Goldman Sachs analyst.

Other revenue opportunities for Nvidia

In his research note, Hari said “search” could yield up to $1.0 billion for Nvidia Corp in 2025 and projected enterprise and social media to be a $2.1 billion and $1.9 billion opportunity.

The Goldman Sachs analyst likes Nvidia stock because he expects inferencing to meaningfully contribute to the company’s top line as well.

We recognise that we are presenting a very large range of potential outcomes, but we believe this is far given how nascent Gen AI is and associated difficulty in predicting adoption rates.

Last week, the Nasdaq-listed firm partnered with Intel Corp on extensive attestation services for its H100 GPUs. Other notable Nvidia bulls include famed investor Jim Cramer (source).