Goldman Sachs initiates coverage on Nvidia stock with Buy rating

Investing.com - Goldman Sachs initiated coverage on Nvidia (NASDAQ:NVDA) with a Buy rating and a $185.00 price target on Thursday. The stock, currently trading at $162.88, has shown remarkable strength with a 21.3% gain year-to-date. According to InvestingPro data, NVDA maintains an "EXCELLENT" overall financial health score.

The investment bank views Nvidia as the industry standard in accelerated computing, highlighting the company’s position as a fabless provider of GPU technology and related software (CUDA).

Goldman Sachs acknowledged that Nvidia’s stock price has experienced choppy action recently due to "peak concerns" and the growing presence of custom accelerators in the market.

Despite these challenges, the firm identified four key factors supporting its positive outlook: product leadership with rapid introduction cadence, broadening customer base, early signs of AI monetization, and attractive valuation.

Goldman Sachs believes these strengths position Nvidia to outperform compared to other companies in its coverage universe.

In other recent news, Amazon (NASDAQ:AMZN) Web Services has introduced custom cooling hardware specifically designed for Nvidia’s latest graphics processing units, which are integral to generative AI systems. The new In-Row Heat Exchanger (IRHX) cooling system combines liquid and air-based components to efficiently manage heat, allowing AWS to support Nvidia’s high-density GPU racks without major renovations. This development coincides with AWS launching new computing instances, EC2 P6e and P6e Ultra, which provide access to Nvidia’s powerful server configurations. Meanwhile, Gorilla Technology Group has announced its partnership with Nvidia as an NVIDIA Solutions Partner, enhancing its capabilities in AI, smart city technologies, and cybersecurity. This strategic alliance is expected to accelerate Gorilla’s market growth and expand its product portfolio. CoreWeave Inc has become the first to deploy Nvidia’s GB300 NVL72 platform, setting a new benchmark for AI reasoning and performance, in collaboration with Dell Technologies (NYSE:DELL) and other partners. Additionally, IREN Limited has expanded its AI cloud by purchasing 2,400 next-generation Nvidia Blackwell GPUs, increasing its total GPU fleet to approximately 4,300 units. This expansion is aimed at meeting current customer demand and supporting the company’s growth in AI Cloud Services.

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