Goldman Sachs anticipates that Nvidia will deliver a strong quarterly performance, according to a preview note ahead of the company’s results scheduled for release on February 27. The investment bank expects Nvidia to exceed expectations, citing positive trends in industry supply and demand. However, Goldman Sachs analysts suggest that the market’s expectations are already elevated, making significant outperformance challenging.
Nvidia Corporation designs and manufactures computer graphics processors, chipsets, and related multimedia software. The company’s products drive advancements in gaming, professional visualization, data centers, and automotive markets. According to Goldman Sachs, the near-term stock performance is closely tied to revenue visibility into 2027, as much of the potential upside for 2026 is already factored into the stock price. Potential catalysts for outperformance in the first half of 2026 include positive revisions to hyperscaler capital expenditure into 2027, growing demand from non-traditional customers like OpenAI and Anthropic, and strong performance from new models trained on Nvidia’s Blackwell architecture.
Despite the high expectations, Goldman Sachs is maintaining a buy rating for Nvidia with a price target of $US250. The bank projects Nvidia will exceed revenue expectations by approximately $US2 billion for the quarter and its earnings per share estimates are 5 per cent and 9 per cent above consensus for the fourth and first quarters, respectively.
Goldman Sachs also identified key downside risks for the stock, including a slowdown in AI infrastructure spending, market share erosion due to increased competition, margin erosion as a result of greater competition, and potential supply constraints that could affect Nvidia’s ability to meet demand.
