Goldman Sachs: NVIDIA's Q2 performance basically meets expectations, reiterates "Buy" rating

Zhitong
2025.08.28 02:45
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Goldman Sachs reiterated its "Buy" rating on NVIDIA, with a target price of $200. NVIDIA's Q2 revenue was $46.7 billion, slightly below Goldman Sachs' expectation of $47 billion, but above Wall Street's expectation of $46.5 billion. Data center revenue grew by 56% year-on-year, and gaming business revenue exceeded expectations. NVIDIA expects a Q3 revenue midpoint of $54 billion. Goldman Sachs believes the performance meets expectations, and the stock price may decline slightly. Broadcom also received a "Buy" rating, with a target price of $340

According to the Zhitong Finance APP, after American chip giant NVIDIA (NVDA.US) announced its latest quarterly financial report, Goldman Sachs reiterated its "Buy" rating for the stock, with a target price of $200.

Data shows that NVIDIA's Q2 revenue was $46.7 billion, slightly lower than Goldman Sachs' expectation of $47 billion but higher than Wall Street's general expectation of $46.5 billion. Revenue from data centers reached $41.1 billion, a year-on-year increase of 56%, while gaming revenue was $4.3 billion, exceeding analysts' expectations of $3.9 billion.

NVIDIA reported a gross margin of 72.4%, in line with expectations; the operating profit margin was 64.5%, exceeding expectations. NVIDIA's earnings per share from operations were $1.04, roughly in line with Goldman Sachs' forecast of $1.05 and exceeding Wall Street's expectation of $1.02.

Looking ahead, NVIDIA expects the median revenue range for the third quarter to be $54 billion, which is in line with Wall Street's general expectations but lower than Goldman Sachs' forecast of $57 billion.

Goldman Sachs stated that given the performance is basically in line with "higher expectations," NVIDIA's stock price may experience a "slight decline." NVIDIA's management confirmed that there were no H20 products shipped to China during the quarter.

Additionally, Broadcom (AVGO.US) announced several updates related to VMware Cloud Foundation. The company revealed that VMware's private AI services will be integrated into VMware Cloud Foundation 9.0, making it a product with AI capabilities. Furthermore, Broadcom plans to integrate NVIDIA's Blackwell GPU into VMware Cloud Foundation to support the deployment of advanced AI models in private cloud environments.

Goldman Sachs reiterated its "Buy" rating for Broadcom and set a target price of $340. Recent developments indicate that Broadcom is committed to enhancing its AI capabilities and strengthening the security measures of VMware Cloud Foundation.

On Wednesday, after the U.S. stock market closed, NVIDIA's stock price fell by as much as 5% following the earnings report. However, NVIDIA's stock price has risen about 35% this year, far exceeding the 12% increase of the Nasdaq index during the same period

NVIDIA Financial Results for Q4 Fiscal 2025
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