Is Nvidia (NVDA) Stock Too Cheap to Ignore? Goldman Sachs Thinks So

TLDR

• Goldman Sachs analyst James Schneider maintains a Buy rating on Nvidia with a $285 price target, citing cheap valuation.
• Nvidia trades at under 14x Goldman’s 2027 earnings forecast — a level Schneider calls attractive.
• The stock is up just 4.5% this year, lagging the iShares Semiconductor ETF (SOXX), which rose 2.7% in one session alone.
• Custom AI chips from Alphabet and Amazon, plus growing CPU spending at AMD and Intel, are weighing on sentiment.
• Nvidia posted $81.61B in Q1 revenue, up 85.2% year over year, beating estimates, and authorized an $80B buyback.

Nvidia (NVDA) opened Monday at $194.83, continuing a frustrating stretch for shareholders watching the broader chip sector move without them. While the iShares Semiconductor ETF rose 2.7% in premarket trading, Nvidia managed just 0.2%.

NVIDIA Corporation, NVDA

The stock is up 4.5% year to date coming into this week — underwhelming for a company still generating some of the strongest revenue growth in tech.

The core problem is one the market keeps repricing: big customers like Alphabet and Amazon are now offering their own custom AI chips to third parties, even while still buying Nvidia’s GPUs. Meanwhile, more AI workloads are shifting to CPUs from AMD and Intel.

That creates a nagging uncertainty about whether Nvidia stays the default choice for AI infrastructure spending — or starts to lose ground.

Goldman Sachs analyst James Schneider isn’t panicking. He maintained his Buy rating and $285 price target on Monday, telling investors to be patient.

Schneider’s case is largely about valuation. Nvidia currently trades at less than 14 times his 2027 earnings forecast — a multiple he considers low given the growth trajectory.

That’s a big number. Even with competitive pressure factored in, Goldman still sees Nvidia growing revenue more than half again next year.

What the Numbers Say

Nvidia’s most recent quarter backed up the bull case. The company reported $1.87 EPS on $81.61 billion in revenue for Q1, topping analyst estimates of $1.76 EPS and $78.42 billion in revenue.

Revenue was up 85.2% year over year. Net margin came in at 62.97%, and return on equity hit 96.94%. These are not the numbers of a company losing its edge — at least not yet.

The board followed the strong quarter with an $80 billion stock repurchase authorization and raised the quarterly dividend to $0.25 from $0.01.

The next-generation Vera Rubin hardware is another factor the market is watching. Mass shipments are expected in the second half of 2026, and bulls argue that if Vera Rubin opens up a clear performance gap over rivals, the competitive noise fades quickly.

What Analysts Think

The broader analyst community largely agrees with Goldman. Of the analysts covering NVDA, 48 have a Buy rating, three have a Strong Buy, and three have a Hold. The consensus price target sits at $303.84.

Cantor Fitzgerald has a $350 target. Wedbush raised its target to $330. China Renaissance started coverage with a Buy and a $319 target. Deutsche Bank holds a Hold rating with a $255 target.

Nvidia was named a Barron’s stock pick on May 13 when it was trading at $226 — the stock has pulled back since then.

Institutional investors hold 65.27% of NVDA. Patriot Financial Group Insurance Agency increased its position by 130.8% in Q1, bringing its total to 223,334 shares worth roughly $38.95 million — making Nvidia its third-largest holding.

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