Goldman Sachs Reiterates Buy on NVIDIA, $300 PT

Goldman Sachs analyst James Schneider reiterated a Buy rating and $300 price target on NVIDIA (NASDAQ: NVDA).

“We have three key takeaways: (1) Nvidia reiterated its 2030 AI TAM outlook of $3 tn – $ 4tn; (2) Supply constraints are broad based across components and Datacenter capacity; (3) Mr.

Huang struck a bullish tone on Physical AI, highlighting autonomous vehicles as a leading use case and pointing to emerging applications such as warehouse automation and navigation systems.

2030 TAM Outlook: Nvidia reiterated its view that AI represents a $3tn-$4tn TAM opportunity by 2030, driven by the shift from retrieval-based computing to generative computing, which requires a fundamentally new layer of compute infrastructure.

Management also emphasized that the slowing of Moore’s Law increases the value of Nvidia’s tightly co-designed hardware and networking stack, including NVLink and scale-up / scale-out architectures, as customers seek higher performance and efficiency.

Mr. Huang noted that Nvidia is capturing more wallet share in overall AI CapEx by providing more value to its customers. Return on Investments: Mr.

Huang highlighted coding as one of the most compelling GenAI applications today and sees cyber security as a major AI opportunity, with AI-powered coding and software development driving significant productivity gains while enabling more advanced security capabilities.

Supply: Mr. Huang acknowledged broad-based upstream supply constraints across advanced packaging, wafers, memory. Mr.

Huang also noted datacenter infrastructure such as power and site availability is also constrained, but emphasized Nvidia’s ecosystem scale and deep customer visibility as key advantages in navigating these downstream bottlenecks.

Despite ongoing supply tightness, management reaffirmed its expectation for ~70% YoY growth in CY27. Financial guarantees: Mr.

Huang discussed the financial guarantees and commitments as Nvidia is supporting the growing AI ecosystem to secure datacenter capacity. Mr.

Huang noted that it helps seed the ecosystem, but the ultimate returns generated and variety of investment partners involved is inconsistent with the notion of circular financing. Physical AI: Mr.

Huang struck a bullish tone on Physical AI, highlighting autonomous vehicles as a leading use case and pointing to emerging applications such as warehouse automation and navigation systems.

He expects the next major inflection to come from reasoning-based manipulation systems, which he believes is roughly two years away, and also sees 6G-enabled systems as another Physical AI use case.”

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