Goldman Sachs expects NVIDIA's quarterly results to exceed expectations, with multiple catalysts this year having the potential to outperform the market

Goldman Sachs research report expects NVIDIA (NVDA.US) to exceed quarterly performance expectations and raise guidance, as industry supply and demand data shows positive performance, but the market's expectation threshold is also set very high. The firm believes that the short-term performance of the stock will depend on the visibility of the company's revenue in 2027, as the upside potential for 2026 has largely been reflected in the current stock price. However, considering the catalysts in the first half of 2026, the firm believes the shares still have the opportunity to outperform the market.

Firstly, the market continues to raise expectations for capital expenditures from hyperscale data center operators; secondly, confidence in demand from non-traditional customers such as OpenAI and Anthropic has strengthened. Furthermore, NVIDIA's Blackwell platform has trained new large language models that demonstrate strong performance, which can further solidify the company's performance leadership.

The firm reiterates its "Buy" rating on NVIDIA, with a target price of $250, expecting the company's revenue for the fourth quarter of fiscal year 2026 to reach approximately $67.3 billion, which is 3% or $2 billion higher than market expectations; and estimates that revenue for the first quarter of fiscal year 2027 will reach approximately $76.8 billion, which is 8% higher than market expectations. The firm's earnings per share forecasts for the two quarters are also 5% and 9% higher than market expectations, respectively