Goldman Sachs reaffirmed a Buy recommendation on Nvidia (NVDA) and assigned a $250.00 price target in a research note published on Thursday. The target implies meaningful upside versus the stock's then-prevailing market price of $174.19.
Using InvestingPro metrics, analysts observe that Nvidia appears undervalued on a Fair Value basis, despite the shares suffering a sharp 9.5% decline over the prior week. Goldman Sachs told investors it anticipates a beat-and-raise quarter for the chip designer, pointing to encouraging supply and demand indicators across the industry, while also recognizing that expectations for outperformance are already elevated.
Nvidia is due to report quarterly results on February 25, which leaves investors roughly 20 days to take positions ahead of an event that could move the stock. Goldman Sachs said that, in the near term, the stock's path will hinge on the company's ability to provide visibility into 2027 revenue. The bank noted that potential upside for 2026 is largely reflected in current prices.
The research note pointed to Nvidia's recent revenue momentum, documenting 65.2% growth over the last twelve months. Goldman Sachs identified several specific catalysts that could drive upside in the first half of 2026, including continued upward revisions to hyperscaler capital expenditure projections stretching into 2027 and growing confidence in demand from non-traditional customers, such as OpenAI and Anthropic.
In addition, Goldman Sachs flagged the performance of new large language models trained on Nvidia's Blackwell architecture as a potential reinforcement of the company's technology leadership. Those model results, the bank said, could help underpin further confidence in Nvidia's product roadmap.
Valuation metrics cited in the note include a PEG ratio of 0.73, which InvestingPro data interprets as a relatively low price-to-earnings multiple in relation to near-term earnings growth. That view contrasts with Nvidia's high absolute P/E of 43.2, underscoring an apparent tension between lofty nominal multiples and faster expected earnings expansion.
The research note also drew attention to a number of recent company developments. Nvidia has not yet accepted the U.S. government's stipulated conditions for a proposed sale of its H200 chips to ByteDance. Although the U.S. government had indicated it would approve a license to permit ByteDance to purchase the chips, Nvidia has not agreed to the Know-Your-Customer requirements and other conditions attached to that approval.
On the infrastructure side, Nvidia and Deutsche Telekom AG opened a €1 billion (about $1.2 billion) data center in Munich. The facility is described as one of Europe's largest dedicated to AI workloads and is presented as a significant step for Germany's digital infrastructure.
Separately, Nvidia's CEO Jensen Huang confirmed plans for the company to invest in OpenAI's next fundraising round and its eventual initial public offering, while downplaying reports of tension between the two firms. In the competitive landscape, AI chip start-up Positron closed a $230 million funding round, achieving unicorn status and positioning itself as a potential competitor to Nvidia. The round was co-led by Arena Private Wealth, Jump Trading, and Unless, with participation from other investors.
Goldman Sachs highlighted these strategic moves and market developments as part of the broader context surrounding Nvidia's outlook. The bank noted that, while upside drivers exist, near-term market performance will be sensitive to revenue guidance beyond 2026.
Contextual note: InvestingPro offers additional research and a suite of valuation and momentum metrics that the research note referenced. The note indicated there are more than 15 supplemental insights in Nvidia's Pro Research Report available through that service.
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