To The Moon

$NVIDIA(NVDA)$ (GS Buy, Target Price $250 (New), Rating Maintained)

This is a pre-earnings preview note. GS reiterates its Buy stance ahead of the earnings release. Current reference price: $207.83; target price: $250; implied upside: 20.3%.

GS expects this quarter to be a "beat-and-raise" quarter, but believes the bar for the stock to outperform the broader market is quite high. Market expectations have already been significantly lifted by positive supply-chain data from $Taiwan Semiconductor Manufacturing(TSM)$ and $SK Hynix, Inc.(HXSCL)$ , as well as upward revisions to CapEx by hyperscale cloud providers.

Two key signals in this report deserve close attention:

• GS has raised revenue and EPS estimates by an average of approximately 12%, with CY26/27 EPS 14%/34% above consensus—far exceeding the market's imagination of Nvidia's earnings power.

• Agentic AI is giving rise to an entirely new CPU demand curve—Nvidia's CPU-only racks are expected to begin shipping in 2H26, a business segment that has barely been priced in by the market. Combined with accelerating demand from non-traditional hyperscale customers such as OpenAI, Anthropic, and sovereign AI clients, Nvidia's addressable market boundary is being redefined.

• NVDA's current NTM P/E trades at a ~10x discount to its 3-year median of 32x, and its premium relative to peers (AVGO, AMD, MRVL) is also near historical lows, leaving a clear path for valuation re-rating.

Core Financial Estimates (FY1Q27E vs Street)

• Total Revenue (GS est.): $80,046M vs Street $78,299M (GS +2%)

• Gross Margin (excl. SBC): 74.8% vs Street 75.0% (–15 bps)

• Operating Margin: 67.8% vs Street 65.4% (+241 bps)

• EPS (excl. SBC): $1.86 vs Street $1.74 (GS +7%)

Segment Estimates (FY1Q27E)

• Data Center: $74,667M vs Street $72,582M (+3%)

• Gaming: $3,429M vs Street $3,632M (–6%)

• Pro Viz: $1,096M vs Street $1,204M (–9%)

• Automotive: $692M vs Street $646M (+7%)

• OEM & Other: $161M vs Street $160M (0%)

FY2Q27E Outlook

• Total Revenue (GS est.): $87,684M vs Street $85,100M (+3%)

• EPS (excl. SBC): $2.05 vs Street $1.91 (+8%)

• Data Center: $82,134M vs Street $79,280M (+4%)

Medium- to Long-Term Estimates (GS vs Street)

• FY2027E EPS: $9.35 (New) vs Street $8.21 (+14%); Revenue $396,573M vs Street $363,280M (+9%)

• FY2028E EPS: $14.80 vs Street $11.04 (+34%); Revenue $609,449M vs Street $481,869M (+26%)

• FY2029E EPS: $18.75 vs Street $13.24 (+42%)

Analyst View

GS maintains its Buy rating with a 12-month target price of $250. Current price: $207.83; implied upside: 20.3%. GS has raised revenue and EPS estimates by an average of approximately 12%. The core drivers are the $1 trillion revenue visibility from the Blackwell and Rubin platforms, as well as the incremental CPU demand generated by Agentic AI.