On August 20th, according to Choice, benefiting from the six consecutive rises, the stock price of [unknown] has risen more than 30% from the low point at the beginning of August. Currently, investors are most concerned about whether the stock can continue to rise with the tailwind of artificial intelligence (AI). $NVIDIA (NVDA.US)$ According to Goldman Sachs, a huge potential catalyst is about to emerge: Nvidia will release its Q2 earnings report next Wednesday (28th) Eastern Time. Toshiya Hari, an analyst with the bank, is generally optimistic about this financial report.

Goldman Sachs said that Nvidia will continue to maintain a strong position in the AI and acceleration computing fields due to the strong demand from large cloud service providers and enterprise customers. According to the bank, a huge potential catalyst is about to emerge: Nvidia will release its Q2 earnings report next Wednesday (28th) Eastern Time. And the bank's analyst Toshiya Hari is generally optimistic about this financial report.

Goldman Sachs pointed out in its latest report that Nvidia will continue to maintain a strong position in the AI and acceleration computing fields due to the strong demand from large cloud service providers and enterprise customers. The bank continues to maintain its "buy" rating on Nvidia, with a target price of $135, which means the stock can still rise by 4% from its current level.

Three reasons

Firstly, Hari pointed out that the bank is very optimistic about Nvidia's growth prospects, considering that there is still strong demand for AI infrastructure such as GPUs.

He further explained that there have been some optimistic signals in the industry recently. For example, in the second quarter, Taiwan Semiconductor's HPC (high-performance computing) business revenue accounted for more than half of total revenue for the first time, and AMD once again raised its annual revenue expectations for AI accelerators. In his view, this indicates a "strong demand environment".

Secondly, Nvidia will also benefit from its huge customer base. Goldman Sachs said that Nvidia has established a large and growing user base, with significant competitive advantages. With the iterative acceleration of GPU, it is expected that Nvidia will continue to maintain and benefit from its dominant position in this field.

Finally, the report also wrote: "Although the delay in shipping the Blackwell series of GPUs has brought volatility to the fundamentals, we are still confident in Nvidia's profitability based on official statements and supply chain related data."

Blackwell is Nvidia's new chip series, and recent reports indicate that the first shipments may be delayed. It is expected that Nvidia management will share more information about the shipment time at the company's financial report conference call. However, regardless of the delay, Hari believes that the impact on its 2025 profit capacity is minimal. He expects Nvidia's earnings per share to reach $4.16 in 2025, 11% higher than the market's general expectations.

Overall, Goldman Sachs expects Nvidia to announce "strong continuous data center revenue growth, unaffected by any temporary obstacles related to Blackwell", because the company's Hopper product line should continue to grow. In addition, Nvidia's network business also has attractive growth prospects.

The bank believes that Q2 financial report will show that the market still has strong demand for Nvidia's H100 GPU, and H200 will begin mass shipments.

The report states that "although the delay in shipment of Blackwell series GPUs has brought some fluctuations to fundamentals, we are still confident in Nvidia's profitability based on official statements and supply chain related data."

Editor/Somer