NVIDIA $NVDA earnings report coming soon—how does Goldman Sachs view the future? 1/ What’s Goldman Sachs’ core perspective? • They expect NVDA’s Q3 earnings to beat expectations and raise forward guidance (beat-and-raise). • But market expectations are already sky-high → Short-term stock price reaction = depends on how much the guidance exceeds expectations. • Key takeaway: Maintain “Buy” rating + raise price target from $210 to $240. 2/ Why is Goldman Sachs more optimistic than the Street? • Goldman significantly raised its revenue and EPS forecasts for NVDA over the next few years (FY26-28), with an average increase of 12%. • Drivers: Recent positive comments from management + Goldman’s own upward revision of hyperscaler capital expenditure forecasts → All point to stronger NVDA data center performance. • In plain terms: Goldman believes the market is seriously underestimating NVDA’s long-term profitability 2-3 years down the line. Their FY27/FY28 EPS forecasts are 22%/28% higher than market consensus. 3/ What’s the most critical info from the earnings call that will directly impact the stock price? • The market is now most concerned about visibility into 2026 (CY26) performance. These four points are key: ◦ $500 billion data center revenue forecast: Needs more details → Timeline to achieve this goal + customer breakdown + proportion of compute and networking businesses. ◦ OpenAI deployment: Needs more clarity → Specific rollout timeline for CY26 + how much revenue it will contribute to NVDA. ◦ Rubin architecture: Needs a clearer roadmap → Ramp-up schedule for the new architecture in CY26 + impact on the product portfolio. ◦ China business: Needs attention → Is recovery possible? 4/ What’s the biggest incremental insight from this report? • The biggest incremental takeaway = Goldman is extremely bullish on NVDA’s long-term profitability and believes the market hasn’t priced it in yet. • Logical chain: Sustained AI infrastructure demand → Increased hyperscaler capital expenditure → NVDA data center (especially networking) revenue exceeds expectations → Drives FY27/FY28 EPS far above current market consensus. • Essentially, Goldman thinks NVDA’s story is far from over, and compared to its profitability 2-3 years from now, the current stock price might still be cheap. 5/ What are the main risk factors? • Slowdown in AI infrastructure spending. • Intensified competition → Market share erosion. • Intensified competition → Margin compression. • Supply chain constraints.