As a result of Goldman Sachs raising its price objective for the rapidly rising chipmaker’s stock in anticipation of a significant increase in earnings from the artificial intelligence (AI) boom, Nvidia’s shares reached a new high on Monday.
With the shares up around 4% to $689.21, the market valuation of the corporation appeared to increase by roughly $70 billion. By Friday’s close, Nvidia had a $1.63 trillion market valuation.
The AI craze has made Nvidia a poster child, and in January, its market value increased at a record monthly rate.
The searing growth in the stock price – already up about 39% so far this year – has made it more expensive to own relative to its peers. Nvidia’s shares trade at 31.4 times the company’s forward earnings estimate, compared with the industry average of 22.9.
Still, Goldman Sachs analyst Toshiya Hari sees more room for growth.
“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,” Hari said.
According to LSEG data, Goldman Sachs analysts increased their price target for Nvidia to $800, which is the third highest among US analysts who have covered the stock and represents a 21% increase from current levels. $625 was its prior price goal.
The bank also increased its average full-year 2025–2026 earnings projections for Nvidia by 22%, citing indications of strong demand for AI servers and increasing GPU supplies.
Hari cited good financial projections from AI server maker Super Micro Computer, and indicators of AI monetization from firms like Microsoft and Meta Platforms.
On the strength of the AI craze, Nvidia has generated billions in sales, while other chipmakers, like Intel, which is not as heavily invested in creating processors for AI, have witnessed a decline in share price.
According to LSEG statistics, analysts are anticipating $20.19 billion in revenue and $4.51 per share in earnings per share for Nvidia’s fourth quarter when the company reports results on February 21.