In one week, a market value of 400 billion dollars evaporated. Goldman Sachs Group, Inc. still "stands" for NVIDIA Corporation (NVDA.US): it is oversold.

After falling nearly 10% last Tuesday, NVIDIA Corporation (NVDA.US) saw its market value evaporate by about $400 billion last week. Despite the sell-off, Goldman Sachs Group, Inc. Chief Analyst Toshiya Hari maintained a buy rating on this chip giant. When asked if the Goldman Sachs Group, Inc. team believed that NVIDIA Corporation's stock was oversold, Hari agreed with this view. Data from Bespoke Investment Group shows that the S&P 500 index had its worst start to September since 1953, with technology stocks being one of the biggest factors in this volatility. However, the index recovered some lost ground on Monday this week. Hari said at the Goldman Sachs Group, Inc. 2024 communications and technology conference, "Recently, NVIDIA Corporation has not been performing that well, but we still like this stock. First of all, the demand for accelerated computing remains very strong. We tend to spend more time on super large-scale enterprises such as Amazon.com, Inc. (AMZN.US), Alphabet Inc. Class C (GOOGL.US), Microsoft Corporation (MSFT.US), and other global multinational corporations, but you will see that the demand is expanding to enterprises and even sovereign nations." NVIDIA Corporation reported its second-quarter earnings on August 28, which exceeded expectations, but were still not good enough for Wall Street, leading to the sell-off. Although Q2 NVIDIA Corporation revenue exceeded Wall Street's expected 4.1%, profit margins were the lowest for the company since the fourth quarter of fiscal 2023. One major controversy surrounding NVIDIA Corporation is whether the momentum in profitability is sustainable. Hari stated that investors are questioning whether this situation will not only occur in 2025, but also in 2026. The stock research team at Goldman Sachs Group, Inc. wrote in a recent report that since early 2023, investors' views on artificial intelligence have swung nearly 180 degrees. Investors' patience is running out, as they want to see rather than be told about income streams and profit margin improvements driven by artificial intelligence. However, the Goldman Sachs Group, Inc. team wrote that with profound generational technological changes such as artificial intelligence, "making judgments based on short-term costs and returns will be futile." The focus will be on the long term. Goldman Sachs Group, Inc. estimates that by the second half of 2025, generative artificial intelligence will begin to make a substantial contribution to industry growth. Hari said about NVIDIA Corporation, "Their competitive position remains very strong, and we do believe that in the commercial chip space, NVIDIA Corporation is the preferred choice, even compared to custom chips, they have an edge in terms of innovation speed." On Monday, NVIDIA Corporation stock rebounded by 3.54%, closing at $106.47. So far this year, NVIDIA Corporation has risen by 115%.