Goldman Sachs raises target price of Nvidia to $210 from $200

Goldman Sachs raises target price of Nvidia to $210 from $200

Goldman Sachs has raised its 12-month price target for Nvidia Corporation (NVDA) to $210 from $200, citing stronger earnings prospects and strategic investments tied to OpenAI . The investment bank reiterated its Buy rating on the stock, highlighting Nvidia’s partnerships and equity stakes in major artificial intelligence players. The new target is based on an unchanged 35x P/E ratio applied to the bank’s normalized EPS estimate of $6.00.

The upgrade reflects Nvidia’s expanding AI partnerships, including its collaboration with OpenAI. These strategic investments and partnerships are expected to drive fresh GPU demand and reinforce Nvidia’s dominant position in the AI ecosystem. However, Goldman Sachs cautioned that such investments could create "circular revenue," where Nvidia’s own capital funds GPU purchases, potentially diluting the stock’s valuation multiple .

Goldman Sachs estimates that OpenAI’s infrastructure spending could reach up to $75 billion in 2026, with Oracle’s recent $18 billion debt raise to support OpenAI showing strong market traction . The bank noted that projects like OpenAI’s infrastructure expansion will increasingly depend on equity and debt financing, potentially driving legitimate customer demand for Nvidia’s products.

While the bank remains bullish on Nvidia, it urges investors to closely monitor the quality of revenue generated from these partnerships. The circular revenue issue could make some sales less valuable than traditional customer sales, potentially impacting long-term growth predictability .

The Strong Buy consensus rating on Nvidia remains robust, with 36 Buy calls, two Holds, and one Sell recommendation, and an average price target of $216.50 . Goldman Sachs’ $210 target falls slightly below the Street average, reflecting its cautious stance on circular revenue concerns .

Goldman Sachs analyst James Schneider noted that Nvidia’s partnerships with AI companies like OpenAI and Microsoft are strategically smart for infrastructure positioning, driving continued GPU sales and reinforcing Nvidia’s dominance in the AI market .