Goldman Sachs Raises Nvidia Price Target on Generative AI Opportunities
Goldman Sachs has raised its price target for Nvidia.
The investment bank cited the company's opportunities in generative artificial intelligence (AI).
Generative AI is a technology that can create new content, such as images, videos, and audio, without human intervention.
Nvidia's graphics processing units (GPUs) are well-suited for generative AI applications.
The company's GPUs are used in a variety of industries, including gaming, data centers, and autonomous vehicles.
Nvidia's revenue from data center sales has been growing rapidly.
The company's data center revenue increased by 55% year-over-year in the first quarter of 2021.
Nvidia's gaming revenue also grew by 106% year-over-year in the same quarter.
Goldman Sachs believes that Nvidia's opportunities in generative AI will drive further growth.
The investment bank raised its price target for Nvidia from $750 to $900.
Nvidia's stock price has already risen by more than 40% this year.
The company's market capitalization is now over $400 billion.
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