July 14 - Recently, Goldman Sachs updated its coverage on Nvidia (NVDA, Financial) and Broadcom (AVGO, Financial) with "Buy" ratings and lofty price targets.
The bank set Nvidia's target at $185, citing the chipmaker's leadership in AI infrastructure, expanding customer base and rapid product innovation. Shares of Nvidia are up more than 20% year‑to‑date.
Broadcom earned a $315 target as Goldman highlighted its strength in custom silicon and “significant” infrastructure software business. The firm expects AI to account for more than 40% of Broadcom's revenue by fiscal year 2026.
Analyst James Schneider noted that both companies are “performance and software ecosystem leaders,” positioning them well in the evolving AI spending cycle. He views current valuations as attractive given their growth prospects and hyperscaler partnerships.
Goldman's model assumes continued AI capital expenditures and software-led differentiation. While monetization has been uneven, Schneider believes early signs point to improving cost efficiencies and revenue growth.
Other analysts echoed the optimism: Citi recently raised its targets on several AI‑linked semiconductors, and Morgan Stanley flagged both firms as “overweight.”
