The world of technology is constantly evolving, and one company that has been at the forefront of this revolution is Nvidia. Recently, Goldman Sachs raised its price target for Nvidia's stock due to the booming artificial intelligence (AI) industry. This announcement has led to Nvidia's stock hitting a record high.
Artificial intelligence has become an integral part of various industries, ranging from healthcare to finance. Companies are increasingly relying on AI technologies to improve efficiency, enhance decision-making processes, and drive innovation. As a leading provider of graphics processing units (GPUs), Nvidia is well-positioned to capitalize on this growing trend.
On the stock market today, Nvidia stock rose 4.8% to close at 693.32. Earlier in the session, it notched a record high 694.97.
In a client note, Hari said Nvidia will benefit from "robust AI server demand and improving GPU (graphics processing unit) supply."
He also raised his Nvidia earnings estimates for fiscal 2025 and 2026. Nvidia's fiscal 2024 ended on Jan. 28.
Dow Jones as bets on an interest rate cut in March dimmed even further. The Dow Jones lost 0.7%, while the S&P 500 receded 0.3%. The NASDAQ Composite lost 0.2%.
The market's negativity was due to the ISM Services Purchasing Managers Index (PMI) for January, which arrived much hotter than expected. The index showed expansion in the services sector at 53.4, well above the 52.0 consensus or the 50.5 reading from December.
Goldman analysts also raised their fiscal 2025 and 2026 estimates for Nvidia's non-GAAP earnings per share by 22% on average to reflect "recent industry data points indicative of robust AI server demand and improving GPU supply."
"We no longer assume a drop off in Data Center revenue in 2HCY24 and instead model consistent growth through 1HCY25 driven by continued spending on Gen AI infrastructure by the large cloud service providers, a broadening customer profile, and multiple new product cycles," the analysts wrote.
Nvidia will remain the industry gold standard for the foreseeable future given its robust hardware and software offerings, and the pace at which it continues to innovate," Hari wrote.
Nvidia shares rose 3% in early Monday trading, against a 0.68% decline for the Nasdaq, and were last seen changing hands around $682. 
The stock hit an all-time high of $694.97 earlier in the session. The shares have risen more than 42% since the start of the year.
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