On Tuesday, Goldman Sachs raised its price target for Nvidia from $1,000 to $1,100, while reiterating its buy recommendation on the stock.

In a research note, the US investment bank explains that it has raised its earnings forecast for the graphics chipmaker by 8% for the period 2025-2027.

The firm justifies its optimism by the continuing solid demand for its processors for AI-optimized servers, and the continued improvement in the component supply chain.

Despite the stock's clear outperformance since the start of the year (+86%, compared with +9% for the S&P 500 index), Goldman believes that upwardly revised market estimates could continue to support the stock.

The New York bank points out that the stock is currently trading on a PER of 35x, a premium of just 36% to the sector, compared with a three-year median of 160%.

The stock is on Nvidia's 'Conviction List' of recommended 'Strong Buy' stocks.

Nvidia is due to publish its quarterly results in just over two weeks' time, on Wednesday May 22.

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