Goldman Sachs is getting more bullish on shares of Nvidia after the chipmaker posted a slight revenue and net income beat, driven in part by demand for artificial intelligence chips. Analyst Toshiya Hari upgraded shares to buy from neutral, saying that growing AI adoption should assert Nvidia's dominance in the space as customers lean on already available enterprise options. He added that, "The combination of positive estimate revisions and a potential expansion in the stock's multiple - consistent with historical recovery phases - will drive continued outperformance in the stock." Shares of Nvidia were last up more than 12% before the bell Thursday, positioning the semiconductor company to build on its 42% gain this year. The stock slumped more than 50% in 2022. Along with the upgrade, Hari lifted the firm's price target to $275 from $162, suggesting shares could gain nearly 33% from Wednesday's close. Despite near-term headwinds, Hari thinks Nvidia's gaming business is beginning to normalize, having reached a bottom. He added that the company also looks decently positioned to pass through inflationary constraints, and investors should consider adding to their positions even at the current price. "Given the recent emergence and potential proliferation of generative AI, we envision the rate of Nvidia's wallet share growth within the context of overall cloud capex accelerating in the near- to medium-term," he wrote. NVDA 1D mountain Nvidia shares jump on earnings report — CNBC's Michael Bloom contributed reporting
