Goldman Sachs: Raises Nvidia's target price to $285, maintains "Buy" rating

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Deep Tide TechFlow News, May 21 — In its report, Goldman Sachs said that NVIDIA (NVDA.O) exceeded expectations in the first fiscal quarter ended April. The firm highlighted the company’s strong performance guidance and an optimized capital allocation plan. It believes that the sustainability of capital expenditure provides a clear path for NVIDIA to continue outperforming the broader market going forward.

Goldman Sachs raised its average earnings per share forecast for NVIDIA by 6% to reflect higher revenue expectations and a tax rate lower than expected (in line with the company’s guidance); it also increased the target price from $250 to $285 and maintained a “Buy” rating. Given NVIDIA’s strong quarterly performance and earnings guidance far above market expectations (even though market sentiment was already somewhat optimistic ahead of the earnings release), Goldman Sachs expects NVIDIA’s share price to rise moderately. Goldman Sachs noted that before the earnings release, investor expectations had already increased as mega-scale cloud service providers raised their capital expenditure forecast. However, Goldman Sachs believes NVIDIA’s second-quarter guidance still outpaces these already-upgraded expectations. (Jin10)

NVDAX-1.57%
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