Goldman Sachs has issued a warning regarding potential “circular revenue” for Nvidia Corp. (NASDAQ:NVDA) stemming from its strategic investments and partnerships, even as the investment bank raised its price target for the semiconductor giant.

This caution comes as another major financial institution, Barclays, offers a more conservative outlook on Nvidia’s future revenue potential compared to CEO Jensen Huang‘s ambitious projections, commonly dubbed “Jensen’s Math.”

Know all about NVDA’s fundamentals here.

Goldman Sachs Raises PT On NVDA, But Has This Warning

According to an Investing.com report, Goldman Sachs raised its price target for Nvidia shares to $210 from $200, maintaining a Buy rating.

However, the firm highlighted concerns that “potential ‘circular revenue’ from strategic investments could be dilutive to Nvidia's multiple.”

This refers to situations where Nvidia, as a supplier, also makes equity investments in its customers, necessitating “additional scrutiny” due to its dual role as both investor and vendor.

The concern is particularly pertinent given the massive infrastructure spending anticipated from partners like OpenAI, which could require up to $75 billion by 2026. Social media observers like Mike Zaccardi and Zerohedge also amplified this “circular revenue” concern from the Goldman Sachs report.

Barclays Projections Challenges ‘Jensen’s Math’

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