Nvidia's $500 Billion Dream Looks Real – And Goldman Is More Bullish Than Ever

Despite a 9% weekly rally that pushed Nvidia Corp. (NASDAQ:NVDA) to a $5 trillion valuation milestone, Goldman Sachs says the party is far from over.

The investment bank sees more upside ahead for the AI chip leader, with analyst James Schneider lifting the stock’s 12-month price target to $240, up from $210. That implies nearly 20% upside from current levels.

In a Friday note, Schneider reaffirmed a Buy rating on Nvidia, citing better visibility into its $500 billion datacenter revenue forecast, accelerating AI infrastructure demand, and improving clarity around OpenAI’s chip deployments and the upcoming Rubin architecture ramp in calendar year 2026.

Goldman’s call marks the second major Wall Street upgrade this week, following Bank of America’s $275 target earlier—fueling growing conviction that Nvidia still has room to run even after its historic surge.

Read also: Nvidia Stock Is On Fire—Here’s Why It Could Surge 30% More

$500B In Orders, And Growing

According to Goldman, the main driver of bullish sentiment is Nvidia’s ability to secure over $500 billion in datacenter revenue across 2025 and 2026.

That estimate, first disclosed at last week’s GTC event, was framed around a mix of GPU and networking hardware tied to 20 GW of compute deployments.

Schneider said investors will be focused on “incremental details” behind that massive number—such as cadence, customer concentration, and product mix—when Nvidia next reports earnings on Nov. 19.

Why OpenAI And Rubin Matter For 2026

Goldman analysts are watching closely for more insight into OpenAI’s planned chip deployments, including their timing and expected revenue contribution in 2026.

Alongside that, they flagged the importance of Nvidia’s Rubin chip platform, introduced as the company’s next-generation architecture to follow Blackwell.

According to the note, the trajectory of Rubin’s ramp, including product mix and commercial adoption, will likely be a major factor in how investors shape expectations for Nvidia’s 2026 earnings power.

“We expect Nvidia to deliver a beat-and-raise quarter,” Schneider wrote, adding that the stock’s reaction will hinge on the magnitude of upside to forward guidance.

Goldman’s Nvidia Forecasts Are Now Well Above the Street

Goldman raised its revenue and non-GAAP EPS estimates by 12% on average across fiscal years 2026 through 2028.

Their updated EPS estimate for fiscal years 2027 and 2028 is now 22% and 28% above Street’s consensus, respectively, thanks in part to stronger hyperscaler capital spending and recent management commentary.

For the near term, Goldman projects third- and fourth-quarter EPS of $1.28 and $1.49, both modestly above the Street.

Looking ahead, Schneider said market focus will shift to two key questions: how much upside is left in hyperscaler capex, and how much revenue contribution Nvidia can pull from non-traditional customers—particularly as the AI buildout broadens beyond big tech.

Even with Nvidia now valued at $5 trillion, or 16% of the U.S. GDP, Goldman Sachs views the stock as driven more by fundamentals than hype.

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Image created using artificial intelligence via DALL-E.