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Goldman Lifts Nvidia Earnings Forecast as Post‑Earnings Selloff Fuels Valuation Debate

Investors now seek evidence that AI spending will endure with margins holding near recent highs.

Overview

  • Goldman Sachs reiterated a buy on Nvidia, kept its $250 price target, and raised EPS estimates by about 2% while increasing multi‑year sales and margin assumptions.
  • Nvidia shares have fallen roughly 9% post‑report to about $177.19 despite record fiscal Q4 revenue of $68.13 billion and guidance of roughly $78 billion next quarter with ~75% gross margins.
  • Data‑center revenue reached $62.3 billion, about 91% of total, as Goldman pointed to hyperscaler capex and spending by “non‑traditional” customers like OpenAI and Anthropic as potential upside drivers.
  • Reporting indicates Nvidia‑linked commitments with AI labs, including a reportedly in‑progress OpenAI investment and a multibillion‑dollar Anthropic arrangement tied to Grace Blackwell and Vera Rubin systems.
  • Several brokers raised targets following the quarter—Bank of America and Citigroup to $300—while Susquehanna cautioned that, despite “monster” guidance, further multiple expansion could be harder to achieve.