Goldman Sachs Raises Nvidia's Earnings Estimates by 2% Post Q4 Earnings: A Bullish Outlook on Nvidia's Growth Potential
Goldman Sachs recently reviewed Nvidia's stock performance following its Q4 earnings report. Despite maintaining a buy rating and a $250 price target, the big bank raised its earnings estimates by nearly 2% on average. Nvidia's stock price has dropped by 9.4% since the earnings report, currently trading at $177.19.
Nvidia's strong Q4 earnings, with sales of $68.1 billion and Q1 guidance of $78 billion, exceeded expectations. The company's data center sales, reaching $62.3 billion, showcased its growth potential in the AI sector. Nvidia has consistently surpassed top and bottom-line estimates over the past four quarters.
Major hedge funds, including Citadel and Bridgewater, have increased their positions in Nvidia stock. Despite the post-earnings selloff becoming a trend, Goldman Sachs believes that Nvidia's future prospects are promising, leading to a positive outlook for the stock.
Goldman Sachs anticipates a cleaner set of stock-moving catalysts in the coming months, prompting a 2% increase in EPS estimates. The bank is optimistic about the growth potential in hyperscaler capex and the expanding demand from non-traditional customers like OpenAI and Anthropic. These factors contribute to Goldman's bullish stance on Nvidia's future performance.