Financial heavyweight Goldman Sachs seems to think that NVIDIA is on the money and worth the investment going by recent strong performance within the company's primary gaming market.
The bank has upgraded its assessment of the NVIDIA's prospect by upping the NVIDIA share price to an expected target of £192, up from a previous $179. Alongside, Goldman Sachs recommends buying NVIDIA stock and foresees a 25% year-on-year increase in value in Q4 alone, hence its higher valuation of the stock price.
Despite a few shaky days, NVIDIA share value is on the up after gaining close to 3.5% percent in value yesterday alone, raising the price to $178.40.
In terms of its position in relation to other hardware heavy hitters, Goldman Sachs now values NVIDIA as a better investment than both rival AMD and CPU manufacturer Intel.
Why Is It Doing So Well?
Goldman Sachs says that NVIDIA has recovered from the slump caused by the cryptocurrency mining crash witnessed last year, which significantly affected sales for the GPU manufacturer, bolstered by strong gaming sales thanks to NVIDIA’s dominance in the enthusiast high end GPU space (due to AMD not having any top-tier products to take on NVIDIA products) and higher demand within the server and data center market.
As always, forecasting isn't an exact science, and although Goldman Sachs assessment appears to be based on reliable data, the high tech market is volatile. A flurry of new GPUs and CPUs coming from both AMD and NVIDIA in the coming months could drastically affect how this all plays out.