Goldman Sachs’ top trades for earnings season bullish on AI: Nvidia ($185 target), Broadcom, Microsoft, Micron; S&P 500 target: 6,900 (+11%)

Goldman Sachs’ top trades for earnings season bullish on AI: Nvidia ($185 target), Broadcom, Microsoft, Micron; S&P 500 target: 6,900 (+11%)

Title: Goldman Sachs’ Top Trades for Earnings Season Bullish on AI: Nvidia ($185 Target), Broadcom, Microsoft, Micron; S&P 500 Target: 6,900 (+11%)

Goldman Sachs has released its top picks for the upcoming earnings season, with a strong focus on artificial intelligence (AI) and semiconductor companies. The investment bank is bullish on Nvidia, Broadcom, Microsoft, and Micron, with specific price targets and optimistic outlooks for each stock.

Nvidia, a leading provider of AI hardware, received a buy rating from Goldman Sachs with a price target of $185. Analyst James Schneider expects the inference market to see a dramatic growth uptick over the next five years, led by hyperscalers. He predicts that AI CapEx can sustain growth from current levels, driven by early signs of incremental revenue and cost takeout. Nvidia is seen as the biggest beneficiary of the ongoing AI infrastructure buildout, with Schneider highlighting the company's attractive valuation and potential for stock outperformance in the medium term [2].

Broadcom, a semiconductor company, was also given a buy rating with a price target of $315. The analyst believes that Broadcom will drive outsized market share in custom silicon for hyperscalers and generate steady, growing profitability in its infrastructure software business. By 2026, AI is expected to comprise over 40% of the company's revenue, justifying the stock's premium valuation [2].

Microsoft, a technology giant, was not explicitly mentioned in the provided materials but is often considered a top pick due to its strong position in cloud computing and AI services. The company's Azure platform is a significant player in the AI infrastructure market.

Micron, a leading manufacturer of memory and storage solutions, received a neutral rating with a price target of $130. The analyst initiated coverage on the company, noting that the semiconductor capital equipment industry is in mid-cycle with stable revenue dynamics. The analyst expects stable revenue through 2026, with more downside than upside risks. China is seen as an opportunity rather than a threat for Micron, and the analyst expects a recovery in NAND memory into 2026 [1].

The S&P 500 target was set at 6,900, representing an 11% increase from the current levels. This target is based on the bank's optimistic outlook for the broader market, driven by strong earnings growth and positive economic indicators.

References:
[1] https://www.tipranks.com/news/the-fly/micron-initiated-with-a-neutral-at-goldman-sachs-thefly
[2] https://www.cnbc.com/2025/07/10/buy-nvidia-broadcom-and-these-other-underappreciated-ai-plays-goldman-sachs-says.html