Goldman Sachs Raises Nvidia Price Target Amid AI Investment Scrutiny

Goldman Sachs has raised its price target for Nvidia Corporation (NASDAQ: NVDA) from $200 to $210, maintaining a 'Buy' rating. Analyst James Schneider highlighted Nvidia's strategic investments in AI companies, including a $100 billion commitment to OpenAI, as key factors reinforcing the company's market position and strengthening its CUDA software ecosystem.

However, Schneider cautioned that these investments might lead to 'circular revenue,' where funds invested in AI companies could return to Nvidia through GPU purchases, potentially inflating reported growth. He emphasized the need for additional scrutiny when equity investment comes from a supplier, given the dual role as investor and supplier.

Despite these concerns, Schneider remains optimistic about Nvidia's growth prospects, expecting 'circular' deal revenue to represent less than 15% of total sales by 2027. He anticipates strong demand from both traditional data center clients and new AI entrants.

As of October 10, 2025, Nvidia's stock is trading at $192.57, reflecting a 1.79% increase from the previous close.