Goldman Sachs raised its price target for the high-flying chipmaker's stock in anticipation of a major boost to its earnings from the artificial intelligence boom.

It looked like the company would add about $70 billion to its market capitalization after the stock rose about 4 percent the value of Nvidia stood at $1.63 trillion.

As the poster child of the AI craze, Nvidia saw a record-breaking monthly increase in its market worth in January.

The stock price has grown by about 39 percent so far this year, making it more expensive to own than its peers. The price of Nvidia's shares is 31.4 percent higher than the industry average of 22.9.

Still, Goldman Sachs analyst Toshiya Hari sees more room for growth.

"We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate," Hari says.

According to LSEG data, Goldman Sachs analysts boosted their price target for Nvidia to $850, ranking third among U.S. analysts covering the stock. It had a price target of $625.

Signs of robust AI server demand and improving graphics processing unit supply were cited by the bank as reasons for raising its full-year 2025-2026 earnings estimate for Nvidia.

There are signs of AI monetization from companies including Microsoft and Meta Platforms, as well as a positive earnings outlook from AI server maker Super Micro Computer.

The AI craze has sparked billions in revenue for Nvidia, but other chipmakers that aren't so involved in making chips for AI, like Intel, have seen their shares slip.

Analysts expect fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion for Nvidia, according to LSEG data.