Goldman Sachs Initiates Coverage on Nvidia with ’Buy’ Rating Amid AI Monetization Shift

Goldman Sachs analyst James Schneider has issued a bullish 'buy' rating for Nvidia and other AI-focused firms, signaling a pivotal moment in artificial intelligence monetization. The report highlights $350 billion in cumulative AI infrastructure investments now showing early revenue validation and declining costs.

Semiconductor leaders like Nvidia, Broadcom, Cadence, and Synopsys are positioned as primary beneficiaries of the ongoing AI adoption cycle. Schneider's 'barbell strategy' recommendation balances high-cost AI training infrastructure with emerging cost-efficient inference applications.

Electronic design automation (EDA) software providers emerge as critical enablers for chip designers scaling AI solutions. While acknowledging persistent US-China trade tensions as a risk factor, the analysis underscores structural growth drivers outweighing near-term geopolitical constraints.