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Nvidia has been the market leader this year, and Goldman Sachs expects it to maintain that position going forward. The bank added the chipmaker to its Americas conviction list for the month. It has a buy rating and a price target of $605, implying upside of 39%. These companies were chosen from Goldman’s shortlist of 20 to 25 buy-rated stocks across its Americas coverage. Goldman said it expects the GPU provider to “maintain its status as the accelerated computing industry standard for the foreseeable future,” given its competitive moat and pace of customers developing and releasing increasingly complex AI models. The bank also said strength in Nvidia’s data center business will not abate anytime soon, adding that supply constraints are starting to ease. Nvidia’s share price has seen an A.I.-driven boom of more than 197% this year. NVDA YTD mountain Monster year for NVDA The bank also added IT stock Okta and Cintas to its list, while removing Salesforce and Johnson Controls . Goldman sees Okta as another potential AI beneficiary, adding it expects to see accelerated backlog and recurring revenue as customer demand picks up and opportunities emerge from new product initiatives. Goldman has a $100 price target on Okta, implying shares could gain roughly 22.7% from Friday’s close. For uniform provider Cintas, Goldman said thinks the company’s organic growth has structurally reset higher than pre-Covid levels, driven by volumes and growing opportunity in delivering uniforms into the healthcare vertical. The analyst covering the stock has a $592 price target on the company, which suggests more than 23% upside. Bank of America had upgraded Cintas in mid-September, similarly citing it as a beneficiary of waning recessionary risks. — CNBC’s Michael Bloom contributed to the report.
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