Goldman Sachs lifts Nvidia price target, says chipmaker's partnerships will drive more gains

Goldman Sachs has raised its price target on Nvidia to $210 from $200, maintaining a Buy rating, citing the company's strategic investments and partnerships with firms like OpenAI as a significant driver for potential 12% upside from current levels. Analyst James Schneider anticipates near-term fundamental strength from both hyperscalers and non-traditional customers, projecting substantial upside to 2026 estimates, though he expressed a more guarded view on the stock's multiple due to increased long-term risks from an evolving customer mix.

Analysis

Nvidia's strategic investment in businesses such as OpenAI could boost its stock in coming months, according to Goldman Sachs. The bank lifted its price target on the AI trade poster child to $210 from $200. That implies a gain of 12% from Friday's close. The bank currently has a buy rating attached to shares of Nvidia. The graphics processing unit maker has rallied 40% this year. NVDA YTD mountain NVDA YTD chart Analyst James Schneider pointed to Nvidia's investments and partnerships with companies such as OpenAI as a driver of further gains. While these partnerships could introduce some degree of uncertainty, the analyst is optimistic that Nvidia's outperformance in other verticals could offset any potential risks. "We expect near-term strength in Nvidia's fundamentals driven by upside from both hyperscalers and non-traditional customers — and continue to see the hyperscaler revenue contribution dominating the company's revenue mix," he wrote. Partnerships like this one could help boost "significant upside" to Nvidia's 2026 estimates, Schneider added. He attributed his price target boost to a strong runway of growth not only from core customers, but also from non-traditional buyers. Schneider also pointed out that Nvidia's investment provides another tailwind for the stock by serving as a signaling mechanism to investors disclosing the GPU maker's view on the scale of this market opportunity. "We remain bullish on the stock given the potential upside we see to estimates — but are more guarded on the stock's multiple given increased long-term risks driven by the growing mix of non-traditional customers — including sovereign and startup customers (such as OpenAI)," the analyst wrote. Most analysts are bullish Nvidia. Of the 66 who cover the stock, 59 rate it a buy or strong buy, per LSEG. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . ) Goldman Sachs has reiterated its confidence in Nvidia (NVDA) by increasing its price target to $210 from $200, which suggests a 12% potential upside from its last close, while maintaining a 'Buy' rating. The primary driver for this bullish revision is Nvidia's strategic investments and partnerships, particularly with entities like OpenAI, which are expected to unlock significant upside to 2026 earnings estimates. The analyst, James Schneider, anticipates near-term fundamental strength fueled by robust demand from both traditional hyperscalers and a growing base of non-traditional customers, including sovereign entities and startups. These investments also serve as a powerful signaling mechanism to the market regarding Nvidia's conviction in the scale of the AI opportunity. However, while remaining bullish on earnings estimates, the analyst expresses a more 'guarded' view on the stock's valuation multiple. This caution stems from the increased long-term risks associated with the evolving revenue mix towards these less-established customer segments. This perspective adds a layer of nuance to the overwhelmingly positive sentiment, where 59 of 66 analysts hold a 'buy' or 'strong buy' rating on the stock, which has already rallied 40% year-to-date.

Key Decisions for Investors

• Given the analyst's expectation of fundamental strength and a higher price target, investors with a long-term bullish thesis on AI may view this as a reinforcement to maintain or build positions in Nvidia.
• It is prudent to monitor Nvidia's customer mix and revenue composition in upcoming earnings reports, as the increased reliance on non-traditional clients is cited as a key long-term risk factor that could impact the stock's valuation multiple.
• Considering the stock has already appreciated 40% this year and the analyst's caution on its multiple, investors should weigh the potential for further estimate upside against the risk that significant growth is already reflected in the current share price.