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Goldman Sachs Boosts Nvidia Target to $1,160, Up 22%, Amid AI Surge

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  Published in Stocks and Investing on Saturday, November 15th 2025 at 14:56 GMT by CNBC

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Goldman Sachs Boosts Nvidia’s Target: AI, Partnerships and a Bright Growth Outlook

On October 6, 2025, Goldman Sachs released a bullish update on its long‑held view of Nvidia (NVDA), raising the semiconductor giant’s price target and outlining the catalysts that have propelled the company’s performance to new heights. The analyst note, published on CNBC’s newsroom, frames Nvidia’s trajectory as a function of accelerating artificial‑intelligence (AI) adoption, strategic cloud‑partner alliances, and a robust earnings track record that has outpaced market expectations for the past two quarters.

1. The Price‑Target Upswing

Goldman’s revision moved the target from $950 to $1,160—a jump of roughly 22 %. The research team cited a confluence of factors that justify the higher valuation:

• AI‑Driven Revenue Growth – Nvidia’s GPUs remain the de‑facto standard for training large‑language models, vision processors, and generative AI workloads. The firm’s revenue for the most recent quarter was up by a double‑digit percentage over the same period a year earlier, with AI‑centered sales comprising the lion’s share.
• Strategic Partnerships – The firm is expanding its collaboration with the major cloud providers—Microsoft, Google Cloud, and Amazon Web Services (AWS). These partnerships bring additional compute‑as‑a‑service (CaaS) commitments, ensuring a steady stream of GPU‑dedicated capacity for AI customers worldwide.
• Product Portfolio Expansion – Nvidia’s latest line‑up of graphics processors (the Hopper and Ada Lovelace families) has delivered improved performance‑per‑watt metrics and better support for AI inference, driving both demand and margin lift.
• Earnings Beat – In its latest earnings release, Nvidia posted a net income that surpassed consensus estimates by a wide margin, while the company reported a healthy cash flow that underpins its capital‑allocation strategy.

2. Earnings Context and Guidance

Goldman highlighted that Nvidia’s quarterly revenue climbed to $7.9 billion (vs. $6.4 billion a year earlier) and net income reached $1.7 billion—both above consensus. Management’s guidance for the year indicates continued momentum, with revenue expected to top $12 billion and earnings per share staying firmly in the “high single‑digit” range. The firm underlined that Nvidia’s margin profile has improved due to a shift from legacy GPUs to higher‑margin data‑center and AI chips, and from a cost‑efficient production model.

3. Cloud Partnerships – The Engine Behind Scale

Goldman underscored the importance of Nvidia’s relationships with the three biggest cloud vendors:

• Microsoft Azure – The partnership has integrated Nvidia’s GPUs into Azure’s AI stack, allowing customers to scale their models on demand. Recent announcements indicate a joint “AI super‑cluster” that leverages the Hopper GPUs, expected to become fully operational by the end of 2025.
• Google Cloud – Nvidia’s GPUs are now standard on Google’s Vertex AI platform. The two companies have also explored a joint venture on “edge‑AI” devices that will bring high‑performance inference to mobile and IoT contexts.
• Amazon Web Services – AWS has committed to a sizable GPU‑on‑demand contract that will underpin Amazon’s new “AI‑as‑a‑Service” offerings. The partnership also brings deeper integration of Nvidia’s CUDA SDK into AWS’s ML ecosystem.

Goldman’s note stresses that these collaborations not only guarantee sales volume but also embed Nvidia’s hardware as the default choice for AI workloads across the cloud ecosystem.

4. Macro‑Tech & Market Sentiment

In a broader context, Goldman points out that Nvidia’s growth has become a bellwether for the semiconductor sector. The company’s market‑cap now sits at $2.5 trillion, making it the most valuable chip firm by a wide margin. Goldman believes the current “AI wave”—driven by generative models, autonomous vehicles, and real‑time analytics—is a structural shift that will sustain Nvidia’s premium valuation for the next 3–4 years.

5. Risks and Caveats

Despite the optimistic tone, Goldman reminds investors of several risks:

• Competitive Pressure – Rival firms such as AMD, Intel, and emerging AI‑chip startups are advancing their product roadmaps. Any significant breakthrough could erode Nvidia’s market share.
• Regulatory Scrutiny – The U.S. Department of Commerce’s export‑control rules on AI hardware might impact Nvidia’s ability to sell to certain international customers, especially those in China.
• Geopolitical Headwinds – A slowdown in global trade or a shift in cloud‑service demand could temper GPU consumption.

6. Bottom Line: A Strong Growth Thesis

Goldman’s revised target reflects a confidence that Nvidia’s core strengths—AI leadership, cloud partnerships, and product innovation—will continue to drive top‑line and bottom‑line growth. The note’s analysts maintain that the company’s valuation has room to absorb the additional upside that the AI and data‑center market is still projecting.

In summary, Goldman Sachs’ updated outlook underscores the firm’s belief that Nvidia is not merely a high‑growth semiconductor company, but a pivotal platform that will shape the AI landscape for years to come. The bullish price target, coupled with detailed earnings and partnership updates, offers a compelling narrative for investors looking to position themselves in the evolving AI economy.