Nvidia stock hits all-time high, Goldman Sachs big opportunity in gaming cards

Jensen Huang, CEO of Nvidia, shows the Drive Pegasus robotaxi AI computer at his keynote address at CESRick Wilking/Reuters

• Nvidia shares hit an all-time high Monday after Goldman Sachs said it sees tremendous growth opportunities with its gaming cards.
•  Shares touched a record $292.06 —up about 4% — on Monday.
• Watch Nvidia trade in real time here.

Nvidia shares hit an all-time high Monday after Goldman Sachs said it sees tremendous growth opportunities led by its new Turing architecture and inference capabilities. Nvidia shares rose about 4% — to a record high of $292.06 — on Monday.

According to a note by Goldman, Nvidia’s gaming business is on the verge of accelerating as its benefits from the introduction of Turing-based products. The bank expects the introduction of the Tesla T4 chip for servers and TensorRT software to boost inference capabilities in data centers. 

“Google has already announced the adoption of Nvidia GPUs for inference applications on Google Cloud Platform,” Goldman Sachs analyst Toshiya Hari wrote in a note to clients on Monday. 

Hari expects the high-margin pr-visualization segment to show robust growth “as the launch of Turing assists Nvidia to gain share at the expense of CPUs.” He has an “overweight” rating and a $324 price target. 

In August, the chipmaker introduced its new technology — real-time ray tracing — which supports more cinematic and realistic rendering for animation and video games based on Nvidia’s Turing architecture. The graphics cards deliver six times more performance than their predecessor. 

The momentum comes despite the chipmaker trimming its third-quarter revenue forecast to $3.25 billion from $3.34 billion — due to declining sales from its crypto business. “We’re including no contributions from crypto in our outlook,” Nvidia’s CFO Colette Kress had said during the earnings call with analysts in August.

Nvidia is up 44% this year.

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