Nvidia's share price has risen 218% over the past year, but that hasn't stopped Goldman Sachs from continuing to raise its Nvidia price target。

In a report released on Monday (February 5) local time, Goldman Sachs raised its price target on Nvidia from $625 to $800, 21% higher than Friday's closing price.。As a result, Nvidia's shares rose another nearly 5 percent to close at 693 on Monday..$32 with a record valuation of 1.71 trillion dollars。

Goldman Sachs analysts believe Nvidia's data center revenue will not decline in the second half of 2024, as previously predicted。Instead, Goldman Sachs believes that Nvidia will continue to increase data center revenue in the first half of 2025 due to "continued spending on generative AI infrastructure by large cloud service providers, an expanding customer base, and multiple new product cycles."。

Goldman Sachs believes Nvidia will still benefit from accelerated growth in AI GPU chips such as the H100, according to the latest statements from major cloud providers such as Amazon, Microsoft and Alphabet last week。

Goldman Sachs analyst Toshiya Hari wrote in the report: "We are encouraged by the variety of data from the broader ecosystem that indicate continued strong demand for accelerated computing.。"

Goldman Sachs is bullish on Nvidia for the following reasons.

1. The commercialization of artificial intelligence has begun.。For example, Microsoft began to release the enterprise version of the artificial intelligence assistant Copilot to its large customers on November 1 last year, and started charging。
2. Large tech companies see growth in AI-related capital spending。For example, Meta raised its 2024 capital expenditure guidance to $30 billion to $37 billion from the previous $30 billion to $35 billion.。
3. Nvidia reiterates at CES that its data center revenue will continue to grow beyond 2024。This view is based on strong visibility associated with the capex patterns of large cloud service providers。
4. Some statements from Nvidia's peers also provide some reference for the development of the semiconductor industry.。For example, the latest forward guidance issued by the semiconductor company Microcomputer shows that its continuous revenue growth rate will accelerate from 7% in the first quarter of 2024 to 24% in the second quarter of 2024, at the midpoint of the guidance.。Considered a strong competitor by the market - AMD recently revised its data center GPU revenue guidance for 2024 to about $3.5 billion from more than $2 billion three months ago。In addition, another chipmaker, Marvell, recently expressed optimism about its optical DSP and custom computing businesses.。The company raised its data center segment revenue forecast by 5% for fiscal 2025-2026.。

While it is true that Nvidia faces increasing competition, Hari believes that thanks to its powerful hardware, complementary software products, and rapid pace of innovation, Nvidia will continue to maintain the "industry gold standard" for the foreseeable future.。

Based on supply chain feedback, Nvidia is expected to ramp up production of the next-generation H200 hyperscale processor in the second quarter of 2024, the B100 / B40 will go into production in the second half of 2024, and the X100 / X40 will go into production in the second half of 2024 and be launched in 2025, Hari wrote.。

Hari said: "Our recent conversations with companies across the supply chain indicate that GPU manufacturing capacity will grow sequentially throughout 4Q2024 and will likely see sequential growth acceleration in 3Q2024.。"

Goldman Sachs is not the only investment bank with this strong bullish view of Nvidia, and last week, Bank of America also raised its target share price to $800.。

Bank of America said that although Nvidia's shares have now risen 350% since the beginning of 2023, Nvidia's shares still provide investors with a "convincing valuation" as AI demand is still in its infancy.。Vivek Arya, an analyst at Bank of America, said: "While it is still early days, the results from the top US cloud customers show that there is a solid momentum for spending on GenAI.。"

The bank raised its Nvidia price target from $700 to $800 last Thursday, up 23% from current levels.。On Friday, Nvidia shares surged 5% to close at 661.19美元。

Arya says enterprise Gen AI adoption is yet to roll out and is expected to become more substantial in 2025。The bank expects Nvidia to benefit from its broad availability on the public cloud and unique partnerships with companies such as SAP, VMWare, Dell, HPE and others.。

Nvidia will release its 2023 Q4 and 2023 full-year results on February 21 (EDT) after hours.。Arya said he expects Nvidia to deliver measurable revenue growth and solid earnings growth when it reports earnings later this month.。In the long run, Arya expects Nvidia's earnings per share to exceed $40.。

Arya said: "Nvidia is one of the rare large technology stocks with a 2024 / 25 P / E of 31x / 25x, below its 23-25 (estimated) EPS CAGR of 45%.。We expect earnings per share to reach $40 in 2027 and more than $160 billion in 2027.。"