Goldman Sachs: Nvidia Price Target to $1,000
On March 18, we attended a keynote by Nvidia's Founder and CEO, Jensen Huang, at GTC 2024. In a sold-out SAP Center in San Jose, CA, Mr. Huang made several announcements spanning a) the next-generation Data Center GPU platform (Blackwell), expected to deliver up to 4x faster training and 30x faster inference than the current H100, b) various partnerships across Enterprise Software, Healthcare, Industrial and Chip Design, c) new Nvidia (i.e. NIM and CUDA-X) microservices, and d) ongoing initiatives and customer traction in Automotive/Robotics. All in, we come away from the keynote with a renewed appreciation of Nvidia's 1) unique ability to innovate at data center scale (as opposed to at the GPU or chip level), 2) large eco-system and breadth of its customer and partner engagements and, 3) ultimately, compelling position as one of the key enablers and beneficiaries of the ongoing build-out of Generative Al infrastructure. Note, based on recent industry conversations that point to healthy demand and supply conditions, we are increasing our FY2026-27 revenue and non-GAAP EPS (excl. SBC) estimates, on average, by 10% and 11%, respectively. We reiterate our Buy rating on NVDA (also on the Conviction List) with an updated 12-month price target of $1,000 (up from $875 prior).
Key Takeaways
New Data Center products: from a hardware perspective, Mr. Huang formally introduced a string of new Data Center Compute (i.e. Blackwell platform) and Networking (i.e. Quantum-X800 InfiniBand switches, Spectrum-X800 Ethernet switches) products which, in our view, will assist the company in extending its competitive advantage against current and potential/future competitors. The B200 Tensor Core GPU - composed of two dies connected by a 10 TB/sec link with a total of 208 billion transistors - was the highlight on the Compute side, with the new platform expected to deliver up to 4x faster training, 30x faster inference and 25x lower TCO (total cost of ownership) than the currently-available H100. Based on our recent industry conversations, we expect Blackwell to be the fastest ramping product in Nvidia's history with Amazon, Google, Meta and Microsoft among others to have Blackwell-based products available starting later this year. Key features of Nvidia's new products are summarized below:
Toshiya Hari raises his NVDA price target to $1,000 (from $875 previously) after attending a keynote presentation by Nvidia founder and CEO Jensen Huang at GTC 2024.
Mr. Huang formally introduced a series of new Data Center Computing (i.e. Blackwell platform) and Networking (i.e. InfiniBand Quantum-X800 switches and Spectrum-X800 Ethernet switches) products. The Blackwell architecture is expected to deliver up to 4x faster training and 30x faster inference compared to the H100.
Toshiya raises its Data Center segment revenue estimates for FY2026/27 by 12%/12% and the company's total revenue estimates by 11%/10%, respectively. As a result, GIR's non-GAAP EPS estimates for FY2026/27 (excluding SBC) increase by 11%/10% from $32.30/$36.42 to $35.80/$40.01, respectively.
Nvidia announced a series of new partnerships, including: a) offering generative AI capabilities to enterprise software and data platform providers including Cloudera, NetApp, SAP, ServiceNow and Snowflake; b) collaboration with Johnson & Johnson MedTech; c) BYD's use of Omniverse in multiple digital twin workflows; and d) the adoption of Nvidia solutions by major EDA vendors.
The company also launched a number of software offerings to complement its hardware products. NIM Inference Microservices, as part of Nvidia AI Enterprise, will provide pre-built containers powered by Nvidia inference software so developers can quickly build and deploy AI applications.
The company also highlighted DRIVE Thor, which is a Blackwell-based centralized in-vehicle computing platform that will power next-generation consumer and commercial fleets, new energy vehicles, robobuses, and autonomous last-mile delivery vehicles. Automotive companies such as BYD, GAC AION, XPENG, Plus, Nuro, Waabi and WeRide are adopting DRIVE Thor.
