Nvidia surges to record high as Goldman Sachs boosts price target on AI growth

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom.

According to a Reuters report, the stock experienced a 4 per cent surge, reaching $689.21, poised to contribute approximately $70 billion to Nvidia's market capitalisation, which stood at $1.63 trillion at Friday's close.

Recognised as a symbol of the AI frenzy, Nvidia witnessed a historic monthly increase in market value in January, reflecting its prominent position in the rapidly evolving tech landscape.

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Goldman Sachs analyst Toshiya Hari expressed confidence in Nvidia's continued success.

"We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate," Reuters quoted him as saying.

Despite the significant growth in Nvidia's stock price, up 39 per cent this year, Hari sees further potential for expansion.

The analyst raised the price target to $800, marking a 21 per cent upside from current levels and reflecting the continued optimism surrounding Nvidia's future performance.

The AI-focused growth strategy extends beyond Nvidia, with signs of AI monetisation evident in various companies.

Hari pointed to positive developments from tech giants such as Microsoft and Meta Platforms, as well as encouraging earnings outlooks from AI server maker Super Micro Computer.

These indicators contribute to Goldman Sachs' decision to raise full-year 2025-2026 earnings estimates for Nvidia by an average of 22 per cent.

The anticipated robust demand for AI servers and improving graphics processing unit (GPU) supply further underlines the positive trajectory projected for Nvidia in the coming years.

While Nvidia thrives on the AI wave, other chipmakers not deeply involved in AI, like Intel, have experienced a relative lag in their stock performance.

Nvidia's dominance in the AI market has unlocked substantial revenue, setting it apart in an industry where AI capabilities are becoming increasingly integral.

The company is poised to report its results on February 21, with analysts forecasting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, based on LSEG data.

(With inputs from Reuters)