NVIDIA (NVDA) PT Raised to $165 at Goldman Sachs

Goldman Sachs analyst Toshiya Hari raised the price target on NVIDIA (NASDAQ: NVDA) to $165.00 (from $150.00) while maintaining a Conviction Buy rating.

The analyst comments "Nvidia beat FY3Q (Oct) revenue and non-GAAP EPS Street expectations by 6% and 8%, respectively, as strength in Data Center Compute (+22% qoq vs. +17% qoq in the preceding quarter) more than offset what was a surprising sequential decline in Data Center Networking. Looking ahead, although Nvidia’s FY4Q (Jan) revenue outlook of $37.5bn (+7% qoq) only met Street expectations and management did point to near-term gross margin headwinds related to Blackwell that are likely to persist through the April quarter, we expect a) growing demand for AI infrastructure across all customer groups (i.e. cloud service providers, consumer internet companies, enterprises, sovereign states), b) improving supply and c) gross margin normalization in 2HCY25 and beyond, to drive strong sequential EPS expansion and positive Street revisions throughout CY2025. Following the big beat in Data Center Compute revenue, we increase our FY2025/26/27 non-GAAP EPS (excl. SBC) estimates by 1%/5%/7%, respectively, and raise our 12-month price target to $165 (up from $150 prior). We reiterate our Buy rating on NVDA (which is also on the Americas Conviction List) and highlight the rich catalyst path ahead (i.e. CES in January, FY4Q earnings release in February, GTC in March)."

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