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Goldman Sachs expects Nvidia to post results that beat Wall Street estimates and lift its outlook once again, thanks to booming demand for data centers and AI infrastructure.
In a note released Friday, the firm reaffirmed its Buy rating on Nvidia and raised its price target to $240 per share. Analyst James Schneider said investors are paying close attention to Nvidia’s massive $500 billion data center revenue forecast and future AI-related projects such as OpenAI’s planned deployments in 2026.
Goldman said enthusiasm has grown ahead of Nvidia’s upcoming earnings report, fueled by several big AI announcements and the buzz around the company’s recent GTC event.
The firm increased its data center revenue forecast by about 13%, citing strong management commentary, higher capital spending from major cloud companies, and other positive indicators seen during the quarter.
For the current and next quarters, Goldman expects Nvidia to earn $1.28 and $1.49 per share, both slightly above average analyst estimates. The bank also noted that expectations are high and most investors already hold long positions in Nvidia stock going into the earnings release.
Goldman believes the main focus will be on how Nvidia’s $500 billion GPU and networking business develops, including which customers are driving growth, how product demand is split between computing and networking, and how the rollout of new products like Rubin will shape future results.
The firm also expects investors to watch closely for updates on OpenAI’s upcoming 2026 projects, such as their rollout timeline and how much revenue they could bring in.
Goldman raised its overall revenue and non-GAAP earnings projections for Nvidia by an average of 12% for fiscal years 2026 through 2028. Its new estimates for fiscal 2027 and 2028 earnings are 22% and 28% higher than the current market forecasts, signaling strong confidence in Nvidia’s continued leadership in AI and data center growth.