{"id":2336,"date":"2026-05-09T13:47:43","date_gmt":"2026-05-09T13:47:43","guid":{"rendered":"https:\/\/gw.adampg777.com\/?p=2336"},"modified":"2026-05-09T13:47:43","modified_gmt":"2026-05-09T13:47:43","slug":"goldman-sachs-resets-nvidia-stock-forecast-ahead-of-earnings","status":"publish","type":"post","link":"https:\/\/gw.adampg777.com\/?p=2336","title":{"rendered":"Goldman Sachs resets Nvidia stock forecast ahead of earnings"},"content":{"rendered":"<p><\/p>\n<p>Nvidia (NVDA) is a semiconductor giant and artificial intelligence king. It makes GPUs, CPUs, AI inference accelerators, and networking solutions (which are becoming increasingly more important).<\/p>\n<p>The company divides its revenue sources into five end markets: Data Center, Gaming, Professional Visualization, Automotive, OEM, and Other.<\/p>\n<p>The stock is up approximately 15.3% year to date, at the time of writing, Friday afternoon, May 8, trading near $215 according to Yahoo Finance. Meanwhile, the SPDR S&amp;P 500 index (SPY) is up 8.1% in the same period.<\/p>\n<p>The latest good news moving the stock is Nvidia\u2019s partnership with IREN Limited (IREN) announced on May 7.<\/p>\n<h3><strong>Key facts about the partnership:<\/strong><\/h3>\n<ul>\n<li>The companies intend to deploy up to 5 GW of Nvidia AI infrastructure across IREN\u2019s global data center pipeline over time.<\/li>\n<li>IREN issued to Nvidia a five-year right to purchase up to 30 million shares of ordinary stock, resulting in a right to invest up to $2.1 billion<\/li>\n<\/ul>\n<p>The goal of this partnership is to ramp up deployment of large-scale AI factories by combining NVIDIA\u2019s DSX AI factory architecture with IREN\u2019s expertise across power, land, data centers, GPU deployment, and infrastructure operations.\u00a0<\/p>\n<p>\u201cAI factories are becoming foundational infrastructure for the global economy,\u201d stated Jensen Huang, founder and CEO of Nvidia, in the press release.<\/p>\n<p>A big push for AI factories is not surprising, as more than 89% of Nvidia\u2019s revenue comes from data centers. This is shown in the company\u2019s FORM 10-K. In fiscal year 2026, data center revenue hit $193.7 billion, while the total revenue was $215.9 billion.<\/p>\n<p>However, the whole AI factories strategy consists of offering more than plain AI hardware.<\/p>\n<figure>\n<p>                        <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.thestreet.com\/.image\/MjA5MTY2MjkxNjM2ODU2Njc2\/nvidia-kl_8.jpg?io=1&amp;profile=rss\" height=\"675\" width=\"1200\"><figcaption>Goldman Sachs raised Nvidia EPS estimates.<\/p>\n<p>Shutterstock<\/p>\n<\/figcaption><\/figure>\n<h2><strong>Nvidia unveils Nemotron 3 Nano Omni Model<\/strong><\/h2>\n<p>Nvidia\u2019s key selling point for AI factories is sovereignty. Data ownership, privacy, and model fine-tuning are among the reasons any company or organization that can afford it would want a sovereign AI.<\/p>\n<p>However, for full AI sovereignty, the customer needs access to a high-quality open model, and Nvidia solves this with its line of Nemotron AI models.\u00a0<\/p>\n<p>On April 28, Nvidia launched Nemotron 3 Nano Omni, an open, multimodal model with vision, speech, and language capabilities in a single system. The company said this allows AI agents to deliver faster, smarter responses with advanced reasoning across video, audio, image, and text.<\/p>\n<p><strong>More Tech Stocks:<\/strong><\/p>\n<ul>\n<li><strong>BofA resets Google stock price target after earnings smasher<\/strong><\/li>\n<li><strong>Bank of America resets Microsoft stock forecast after earnings<\/strong><\/li>\n<li><strong>Bank of America resets Intel stock price target after earnings<\/strong><\/li>\n<\/ul>\n<p>Companies already using the model include: Aible, Applied Scientific Intelligence, Eka Care, Foxconn, H Company, Palantir, and Pyler. Nvidia said that Dell Technologies, DocuSign, Infosys, K-Dense, Lila, Oracle, and Zefr are evaluating the model.<\/p>\n<p>As Nvidia successfully improves its AI factory strategy, first-quarter earnings are getting closer, with the report set for release on May 20. <\/p>\n<p>Previous earnings were a smasher, yet the stock still took a dip. The sentiment before earnings seems more positive this time, and Bank of America recently reset its forecast for the stock.<\/p>\n<p>In a research note shared with me, Goldman Sachs analyst James Schneider and his team updated their opinion on Nvidia stock and earnings expectations.<\/p>\n<h2><strong>Goldman Sachs raises Nvidia EPS estimates ahead of earnings<\/strong><\/h2>\n<p>The team said they expect a beat-and-raise quarter based on positive industry supply-and-demand information. However, they noted that they believe that the bar for \u201cstock outperformance is relatively high heading into the print\u201d. <\/p>\n<p>Analysts raised their EPS estimates by approximately 12% on average and noted that the updated calendar-year 2026 and 2027 estimates are 14% and 34% above the Wall Street consensus, respectively.<\/p>\n<p>Schneider expects Nvidia to deliver an approximately $2 billion revenue beat in Q1 with revenue of $80 billion. He estimates Q2 revenue of $87.68 billion, which is 3% higher than the Wall Street consensus. His Q1 and Q2 EPS estimates (excluding stock-based compensation) are $1.86 and $2.05, which are 7% and 8% above the Wall Street consensus, respectively.<\/p>\n<h3><strong>Analysts noted items on the earnings call that could move the stock:<\/strong><\/h3>\n<ul>\n<li>The magnitude of upside to Nvidia\u2019s $1 trillion datacenter guidance at GTC.<\/li>\n<li>Potential upside from agentic AI to the server CPU business.<\/li>\n<li>Competitive dynamics.<\/li>\n<li>Gross margin outlook given rising input costs.<\/li>\n<\/ul>\n<p>In a research note shared with me, Schneider reiterated a buy rating for Nvidia stock and the target price of $250, based on a 30x price-to-earnings ratio multiple applied to his normalized EPS estimate of $8.25.<\/p>\n<p>For Nvidia\u2019s stock multiple to be re-rated, analysts need to see evidence of improving profitability metrics at hyperscalers, the proliferation of agentic AI, and greater visibility into deployments with nontraditional customers.<\/p>\n<h3><strong>Analysts noted key downside risks for Nvidia:<\/strong><\/h3>\n<ul>\n<li>Slowdown in AI infrastructure spending,<\/li>\n<li>Share erosion due to increased competitive intensity,<\/li>\n<li>Margin erosion due to increased competition,<\/li>\n<li>Supply constraints<\/li>\n<\/ul>\n<p align=\"center\"><strong>Related: Morgan Stanley revamps Oracle stock price target<\/strong><\/p>\n<p>#Goldman #Sachs #resets #Nvidia #stock #forecast #ahead #earnings<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia (NVDA) is a semiconductor giant and artificial intelligence king. It makes GPUs, CPUs, AI inference accelerators, and networking solutions (which are becoming increasingly more important). The company divides its&hellip; <\/p>\n","protected":false},"author":1,"featured_media":2337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[456,457,483,1360,330,481,1361,91],"class_list":["post-2336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-ahead","tag-earnings","tag-forecast","tag-goldman","tag-nvidia","tag-resets","tag-sachs","tag-stock"],"_links":{"self":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/2336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2336"}],"version-history":[{"count":0,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/2336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/media\/2337"}],"wp:attachment":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}