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Goldman Sachs has reiterated its bullish outlook on NVIDIA, maintaining a Buy rating and a USD 300 price target despite recent selling pressure across artificial intelligence and semiconductor stocks. The investment bank believes the chipmaker has further room to grow as demand for AI infrastructure continues to support its business.
The recommendation comes after NVIDIA shares fell amid a broader technology sector sell-off, losing around 9% on November 5. Concerns over regulatory uncertainty, higher borrowing costs and the possibility of slower data center investments have weighed on investor sentiment. However, Goldman Sachs sees the recent weakness as an opportunity, arguing that NVIDIA's underlying business performance remains strong.
According to the bank, investors are likely to focus on three major questions when assessing NVIDIA's future growth. The first concerns the company's visibility into data center power availability and infrastructure capacity through 2028. The second involves whether funding for large-scale AI infrastructure investments can remain sustainable. The third relates to the broader demand outlook for artificial intelligence, including enterprise adoption, customer returns on investment, and growing interest in AI-powered computing.
Goldman Sachs also expects NVIDIA's near-term financial performance to potentially exceed current analyst estimates. Its USD 300 price target represents significant upside from the stock's recent trading levels. The investment bank had previously increased its target from USD 285 to USD 300 in August 2026, following NVIDIA's strong fiscal second-quarter results.
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Goldman Sachs forecasts that hyperscalers' capex will reach around USD 800 billion by 2026, helping drive demand for high-performance chips and data center equipment. Goldman Sachs' projections for the larger AI opportunity are expected to rise to between USD 3 and USD 4 trillion in the coming years. However, fears about rising interest rates and other factors might keep the semiconductor sector subdued in the short run.