Goldman Sachs maintains Nvidia’s $285 price target, with valuation already reflecting the risk of ASICs taking market share.

Goldman Sachs maintains a Buy rating on NVIDIA and a $285 price target, noting that the stock’s current valuation already largely reflects risks of share loss stemming from its in-house AI chips and intensifying competition. NVIDIA has underperformed the broader semiconductor sector recently. Chip stocks rallied broadly on Monday, but NVIDIA’s gain was limited; year-to-date, its returns have also lagged significantly behind those of AI hardware peers including Micron, AMD, Intel, and Marvell. A key market concern is that major clients like Alphabet and Amazon are rolling out in-house ASIC chips to third parties while still purchasing NVIDIA GPUs. Meanwhile, increased CPU adoption in AI workloads has also created more incremental opportunities for AMD and Intel. However, Goldman Sachs analyst James Schneider argues that NVIDIA’s risk discount is already excessive. He forecasts that even if ASICs gain some market share and competitors capture part of the incremental demand, NVIDIA’s revenue will still likely post strong growth next year. The Vera Rubin platform, set to enter mass production in the second half of the year, will be critical to determining whether the company can re-establish a significant performance lead over rivals.