TechFlow News, May 21: Goldman Sachs stated in its report that NVIDIA (NVDA.O) delivered better-than-expected results for its first fiscal quarter ended April, with strong forward guidance and an optimized capital allocation plan standing out. The firm believes the sustainability of capital expenditures provides a clear path for NVIDIA to continue outperforming the broader market.
Goldman Sachs raised its average EPS estimate for NVIDIA by 6%, reflecting higher revenue expectations and a lower-than-expected tax rate—consistent with the company’s guidance—and increased its price target from $250 to $285 per share while maintaining a “Buy” rating. Given NVIDIA’s robust quarterly performance and forward guidance that significantly exceeded market expectations—even though market sentiment had already turned relatively optimistic ahead of earnings—the firm expects NVIDIA’s stock price to rise modestly. Goldman Sachs noted that investor expectations had already risen ahead of the earnings release, driven by upward revisions to capital expenditure forecasts from hyperscale cloud service providers. Nevertheless, the firm believes NVIDIA’s second-quarter guidance still surpasses these already-raised expectations. (Jinshi)
