Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com -- Goldman Sachs expects Nvidia to deliver “a beat-and-raise quarter,” citing growing visibility into data center revenue and demand from AI infrastructure projects.
The firm reiterated its Buy rating and raised its price target for NVDA to $240 per share in a 3Q preview note on Friday.
“We expect investors to focus on incremental details on Nvidia’s $500 billion Datacenter revenue forecast, OpenAI deployments in CY26, and the Rubin ramp in CY26,” analyst James Schneider said.
The firm added that investor expectations have increased ahead of earnings,“given multiple AI infrastructure announcements and following the company’s recent GTC event.”
Goldman Sachs raised its Datacenter segment revenue estimates by about 13% “to account for recent management commentary, positive revisions to hyperscaler CapEx, and other intra-quarter datapoints.”
Its 3Q and 4Q EPS forecasts of $1.28 and $1.49, respectively, are 3% and 5% above the Street.
The firm wrote that “expectations are high and investors are long into the print,” with attention likely to center on “the cadence, customer profile, and compute/networking mix” of Nvidia’s $500 billion GPU and networking revenue outlook.
Goldman Sachs also expects the market to focus on OpenAI’s planned deployments in 2026, including timelines, industry preparedness and revenue contribution, as well as the product mix and trajectory in CY26 following the introduction of Rubin.
“We raise our revenue and non-GAAP EPS estimates by 12% on average throughout FY26-28,” Schneider said, noting its updated FY27 and FY28 EPS forecasts are “22% and 28% above Street estimates.”