Goldman Sachs expects another big quarter as demand for AI remains strong.
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Analysts led by Goldman Sachs analyst Toshiya Hari expect Nvidia’s revenue and earnings per share to beat expectations as the company’s fundamentals support further upside.
Goldman said the company’s strength comes from its data center revenue and strong operating leverage, while the bank noted that Nvidia’s hardware remains in demand among the big cloud computing companies and that the company maintains a competitive advantage in AI computing.
For investors concerned that AI investments have yet to produce meaningful results, Goldman said Nvidia’s earnings should counter that view.
“We expect NVIDIA management to provide ROI metrics from specific customers in the upcoming earnings call as a way to instill confidence among investors,” Hari wrote.
But given the delays to Blackwell’s chips, investors should expect some volatility soon, Hari wrote.
But this will be a short-term headwind, and one that Nvidia isn’t without solutions for. The impact will depend on three factors: the extent of the delay, whether customers are willing to accept older Hopper chips, and whether Nvidia can scale up production of the stripped-down Blackwell model.
Goldman maintains a “buy” rating on Nvidia and has a price target of $135 per share.
