Nvidia stock holds steady as Goldman Sachs reiterates Buy rating

Investing.com - Nvidia (NASDAQ:NVDA), currently valued at $1.41 trillion, received a reiterated Buy rating and $200 price target from Goldman Sachs following the chipmaker’s quarterly earnings report. According to InvestingPro data, the company maintains a strong "GOOD" Financial Health score.

The company reported revenue of $46.7 billion, slightly below Goldman Sachs’ estimate of $47 billion but above the Street consensus of $46.5 billion. Data Center revenue reached $41.1 billion, while Gaming revenue came in at $4.3 billion, exceeding analyst expectations of $3.9 billion.

Nvidia posted a gross margin of 72.4%, in line with expectations, and operating margin of 64.5%, which surpassed estimates. The company’s operating earnings per share of $1.04 aligned with Goldman Sachs’ projection of $1.05 and beat the Street’s $1.02 estimate.

For the third quarter, Nvidia guided revenue of $54 billion at the midpoint, matching Street consensus but below Goldman Sachs’ forecast of $57 billion. The company expects a non-GAAP gross margin of 73.5% and operating expenses of $4.2 billion.

Goldman Sachs noted the stock might trade "down modestly" following the in-line results against "elevated expectations," adding that management confirmed no H20 products were shipped to China during the quarter. The firm maintained its 12-month price target based on a 35X P/E multiple applied to its normalized EPS estimate of $5.75.

In other recent news, Broadcom Inc. has made several announcements concerning its VMware Cloud Foundation. The company revealed that VMware Private AI Services will be integrated into VMware Cloud Foundation 9.0, making it AI-native. This development includes commitments from nine of the top 10 Fortune 500 companies, with over 100 million cores licensed globally. Additionally, Broadcom plans to integrate NVIDIA’s Blackwell GPUs into VMware Cloud Foundation, enabling advanced AI model deployment in private cloud environments.

Broadcom also introduced new cybersecurity and compliance tools for VMware Cloud Foundation, targeting organizations in regulated industries. This includes the VCF Advanced Cyber Compliance service, which offers automated compliance management and enhanced platform security. In terms of analyst activity, Piper Sandler raised its price target for Broadcom to $315, maintaining an Overweight rating, citing strong prospects in semiconductor and infrastructure software segments.

Goldman Sachs reiterated its Buy rating on Broadcom, setting a price target of $340. The firm highlighted the importance of XPU revenue contributions and updates on AI revenue guidance for fiscal year 2026. These recent developments indicate a focus on enhancing AI capabilities and strengthening security measures within VMware Cloud Foundation.

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