Goldman Sachs Revises Nvidia Forecast Ahead of Earnings

Goldman Sachs updated its outlook for Nvidia shares several days before the chipmaker releases quarterly results, revising its price target and trimming near-term revenue and profit forecasts. The bank cited evolving demand for artificial intelligence chips along with short-term supply and inventory trends as reasons for the change.

In a client note, Goldman recalibrated estimates for the current quarter and the full fiscal year to reflect shifts in data-center demand, changes in customer purchasing patterns and Nvidia’s recent product cadence. The bank adjusted assumptions about average selling prices for high-end GPUs and the timing of shipments to large cloud customers, which were key drivers of its revised financial model.

Goldman narrowed the range of likely outcomes for the quarter, noting ongoing demand for AI accelerators while flagging quarter-to-quarter volatility tied to enterprise buying cycles. The note pointed out that revenue can fluctuate when customers manage inventory or time purchases around new product ramps.

The bank said investors will focus on Nvidia’s revenue and profit for the data-center segment, guidance for the next quarter and management commentary on supply constraints or easing. Goldman placed greater emphasis on company guidance and customer pipeline updates as main drivers of short-term stock movements.

The note included updated estimates for gross margin and capital expenditures, reflecting higher ASPs for certain GPU lines and continued investment in custom chips and software. Goldman also altered its revenue mix assumptions, projecting a different split between gaming, professional visualization and data-center sales than in prior forecasts.

Goldman advised attention to management comments on customer inventory levels, delivery schedules for newly announced products and the pace at which hyperscale cloud customers commit to next-generation accelerators. The bank’s update came amid similar analyst activity across the sector as research teams adjusted models in response to shifting enterprise budgets and AI infrastructure plans.

Nvidia, led by CEO Jensen Huang, supplies GPUs used in machine learning and generative AI applications and has seen revenue growth largely driven by demand from data centers. The company’s quarterly reports typically include segment breakdowns, commentary on product ramps and forward guidance that analysts use to update estimates and valuations.