Goldman Sachs: Maintains NVIDIA price target at $285, valuation already reflects the risk of ASICs capturing market share

BlockBeats News, July 7 — Goldman Sachs maintains a Buy rating on NVIDIA with a target price of $285, stating that the current valuation already sufficiently reflects the share loss risks brought by self-developed AI chips and intensifying competition.

NVIDIA has recently underperformed the broader semiconductor sector.

The market's main concern is that major clients such as Alphabet and Amazon are launching their self-developed ASIC chips to third parties while still purchasing NVIDIA GPUs. Meanwhile, the increasing use of CPUs in AI workloads is providing additional incremental opportunities for AMD and Intel.

However, Goldman Sachs analyst James Schneider believes that NVIDIA's risk discount has been overly excessive. He expects that even if ASICs gain some market share and competitors capture some incremental gains, NVIDIA's revenue could still see robust growth next year. The Vera Rubin platform, which will go into mass production in the second half of this year, will be a key factor in determining whether the company can once again expand its performance lead.