Goldman Sachs remains undeterred by the recent sell-off in Nvidia (NVDA) stock, staying bullish on the chip giant despite its recent market struggles. In the wake of Nvidia shedding about $400 billion in market value last week due to a nearly 10% decline in stock price, Toshiya Hari, a lead analyst at Goldman Sachs, boldly maintained a Buy rating on the tech stock.
Hari’s confidence in Nvidia’s future prospects was echoed at the Goldman Sachs 2024 Communacopia and Technology Conference, where he emphasized the strong demand for accelerated computing across various sectors. He noted that while much attention is paid to the tech giants like Amazon, Google, and Microsoft, there is a noticeable uptick in demand from enterprise and sovereign states as well.
The recent sell-off in Nvidia’s stock was sparked by Wall Street’s lukewarm response to the company’s better-than-expected earnings report in late August. Despite exceeding revenue expectations, investors were left questioning the sustainability of Nvidia’s earnings momentum, looking ahead to both 2025 and 2026.
Goldman’s equity research team highlighted the evolving sentiment around artificial intelligence (AI), noting a shift in investors’ patience and preference for tangible results over promises of AI-driven revenue streams. The focus now is on demonstrating the real impact of AI on revenue growth and profit margins, rather than simply talking about it.
Looking forward, Goldman sees generative AI as a significant driver of sector growth by the second half of 2025. Hari emphasized Nvidia’s competitive edge in the market, particularly in merchant silicon, where the company continues to lead in innovation.
With CEO Jensen Huang scheduled to speak at the conference, all eyes are on Nvidia’s next moves and strategic roadmap as it navigates through the ever-evolving tech landscape. Despite recent challenges, Goldman Sachs remains optimistic about Nvidia’s long-term potential and its ability to weather the storm in the volatile tech sector.
For more updates on the latest technology news impacting the stock market, stay connected with Extreme Investor Network. Stay informed about the financial and business news shaping the market dynamics with our expert insights and analysis. Join us as we explore the world of finance and investing, uncovering hidden gems and untapped opportunities for extreme investors like you.