NVIDIA target price hits $200! Goldman Sachs bets on better-than-expected earnings report, three major puzzles to be solved

According to the Zhitong Finance APP, on the eve of NVIDIA (NVDA.US) releasing its second-quarter results, Goldman Sachs published a research report, raising its target price from $185 to $200, maintaining a "buy" rating.

Analyst James Schneider stated that although market expectations for NVIDIA are already "high," he still believes the company is likely to deliver "better-than-expected results and raise guidance." The analyst emphasized that investors should focus on the performance guidance, where progress in the Chinese market and changes in profit margins may become key catalysts for stock price fluctuations.

Focus on Three Key Points

Schneider wrote, "The earnings call should focus on three key points," first being the production progress of the Blackwell chip in the second half of the year, as well as the research and development progress of the next-generation Rubin chip architecture planned for release in 2026.

The second key focus highlighted in the Goldman Sachs report is the timeline for the H20 chip aimed at the Chinese market. These downgraded AI chips that comply with U.S. export control requirements will have their market launch progress and expected revenue contributions become important indicators of NVIDIA's business resilience in China.

The third area of concern is the trend in gross margins, particularly whether the company can release profit space by digesting H20 chip inventory. It is worth noting that NVIDIA's stock price has risen approximately 34% by 2025, so management needs to provide strong performance support to maintain the current valuation level.

The market has high expectations for this earnings report. A FactSet survey shows that analysts generally expect NVIDIA to achieve $45.7 billion in revenue, with earnings per share reaching $1