Goldman Sachs: Maintains "Buy" Rating on NVIDIA, 12-Month Target Price of $200

According to a report by Jinse Finance, Goldman Sachs stated in its latest report that while NVIDIA's (NVDA.O) latest earnings report and next-quarter guidance are solid and generally in line with Wall Street expectations, they may still fall short of the market's previously heightened expectations, potentially leading to short-term downward pressure on its stock price. Goldman Sachs analysts believe that the market has largely priced in the growth potential brought by its next-generation Blackwell architecture chips. However, Goldman Sachs still maintains a "Buy" rating on NVIDIA and has set a 12-month target price of $200. This target price is based on an estimated standardized earnings per share (EPS) of $5.75 and a price-to-earnings (P/E) ratio of 35. The report also highlighted four key downside risks that investors need to be cautious of: a slowdown in AI infrastructure spending, intensified competition leading to market share loss, competition impacting profit margins, and supply chain constraints. (Jin10)