NVIDIA (NVDA) PT Raised to $135 at Goldman Sachs

Goldman Sachs analyst Toshiya Hari raised the price target on NVIDIA (NASDAQ: NVDA) to $135.00 (from $120.00) while maintaining a Buy rating.

The analyst comments "Our meetings at Computex 2024 reinforced our view that Nvidia is on track to maintain its competitive lead in Accelerated Computing for the foreseeable future. While we expect the large cloud service providers (CSPs) to continue to pursue internal solutions (i.e. custom ASICs) and engage with alternative merchant suppliers (e.g. AMD), we envision Nvidia’s R&D scale (Exhibit 2 and Exhibit 3) and ability to innovate at the data center level deepening its competitive moat. From a hardware perspective, we see Nvidia’s annual cadence of new product introductions and/or enhancements across GPU (Blackwell/Blackwell Ultra in 2024/25 and Rubin/Rubin Ultra in 2026/27), CPU (Vera in 2026), NVLink (5th-gen in 2024 and 6th-gen in 2026), NIC and Switch (Spectrum X800 in 2024, Spectrum Ultra X800 in 2025 and X1600 in 2026) as formidable competition to its peers. We recognize the rest of the industry’s push toward open standards (i.e. Ultra Ethernet and Ultra Accelerator Link or UALink); however, whether the consortia could keep up with Nvidia’s rate of innovation is yet to be determined, in our view, particularly given the urgency at which the CSPs and large enterprises are developing/deploying Gen AI models. Separately, we also consider access to supply as a competitive advantage Nvidia possesses relative to its competition. Based on conversations with industry participants, Nvidia appears to have secured adequate supply of components/inputs ranging from advanced packaging (i.e. CoWoS or Chip-on-Wafer-on Substrate) to High-Bandwidth Memory (HBM) to likely exceed CY2025 Street consensus estimates."

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