Nvidia's stock price has surpassed an all-time high. This follows the news that global investment bank Goldman Sachs raised Nvidia's goal stock price.
Reuters reported on the fifth (local time) that Nvidia's stock price rose about 4% to $689.21 (about 910,000 won), hitting an all-time high. Nvidia's market capitalization was estimated at $1.63 trillion (roughly 2,100 trillion won) as of the tip of the day on the 2nd.
This follows the news that Goldman Sachs raised Nvidia's goal stock price to $800 (about 1 million won).
Goldman Sachs predicted that strong demand for AI servers and graphics processing units (GPUs) for data centers will proceed to drive the rise in Nvidia's stock price. He also raised Nvidia's goal stock price for the following 12 months from $625 (about 830,000 won) to $800. It’s believed that there may be room for a further 21% increase from the present stock price level.
Nvidia's stock price soared 239% last 12 months and rose 34% as of the 2nd this 12 months. The 12-month expected price-to-earnings ratio (PER) is 31.4 times, significantly exceeding the industry average of twenty-two.9 times. Goldman Sachs believes that although Nvidia's stock price has already risen significantly, there remains to be significant upside potential.
Last quarter as well, it was predicted that the performance of the info center business, which is the core business, would show a trend of moving from the previous general-purpose computing represented by CPU to accelerated computing represented by GPU.
At the identical time, Nvidia's profit forecasts for 2025 and 2026 were also raised by a median of twenty-two%. Goldman Sachs analyzed that the undeniable fact that Microsoft (MS), Meta, and Supermicro are showing signs of monetization of their AI business shows strong demand for accelerated computing.
NVIDIA is scheduled to report its fourth quarter earnings on the twenty first. Analysts expect the corporate to report fourth-quarter earnings of $4.51 per share. It is a sharp increase in comparison with 88 cents in the identical period last 12 months.
Sales were predicted to extend greater than thrice from the identical period last 12 months to $20.19 billion (about 26.96 trillion won).
Reporter Park Chan cpark@aitimes.com