Goldman Sachs just found a reason to like Nvidia stock again | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Goldman Sachs just handed Nvidia (NVDA) stock investors a new reason to get excited.

According to a report from MarketWatch, the bank’s analysts say that a beaten-down group of long-term growth stocks is poised for a potential comeback, and Nvidia is at the heart of that argument.

Bear in mind that over the past few months, there has been immense pressure on tech and AI stocks, with Nvidia and others mostly in the red.

Given the current backdrop, investors have been much less willing to pay a premium for the high-flying AI names, especially as bond yields and oil prices climb.

According to Seeking Alpha, despite the recent sell-off, Nvidia stock is still trading at a lofty 23.6 times forward non-GAAP earnings. However, it’s worth noting that it’s now trading at roughly 47% behind the sector median.

That situation has left many of the top secular growth stocks looking a lot more fragile than they did over the past couple of years.

Now, Goldman feels the backdrop could turn.

A weaker growth outlook, along with greater economic uncertainty, might send investors toward growth stocks with pedigree.

That is exactly where Nvidia comes in.

The AI chip giant is one of the market’s clearest long-term growth stories, and Goldman’s new take suggests the story could get a lot more interesting.

Goldman Sachs sees a changing market backdrop that could put Nvidia stock back in focus again

Getty Images/&Tab;Justin Sullivan / Staff

The stocks Goldman says fit the ‘Rule of 10’

Goldman Sachs just separated ordinary growth stocks from the ones it views as long-term winners.

More Nvidia:

It calls them ‘Rule of 10’ stocks.

Put simply, these are businesses growing sales at a rapid clip and expected to continue on that trajectory.

In Goldman’s framework, a company falls into this category if it has grown its sales by at least 10% in each of the past two years and is also expected to post at least 10% sales growth this year and in each of the next two years.

That matters a ton because investors are upbeat about businesses that can continue to grow. Goldman Sachs believes many of these stocks have fallen enough to warrant another look.

Here are the non-software names Goldman feels meet the criteria:

Broadcom
Advanced Micro Devices
Nvidia
Arista Networks
Meta Platforms
Alphabet
Uber
Netflix
Amazon

Why Goldman Sachs sees a better setup for Nvidia stock

Goldman Sachs believes the backdrop for stocks spearheaded by Nvidia is improving.

That matters a ton because secular growth stocks have undergone what analysts frame as “the de-rating of secular growth”.

Put simply, it’s a stretch where investors have been reluctant to reward fast growers as they did in the past.

Even with the S&P 500 back within 2% of its record high, secular growth stocks are trading more than 20% below their October 2025 highs.

In fact, Goldman argues that its Rule of 10 basket has effectively lagged the equal-weight S&P 500 by 27 percentage points in the past six months, “one of the worst stretches of underperformance during the past 15 years.”

Goldman identifies that the brutal market sell-off of late has been led by “expectations of economic acceleration, surging bond yields, and AI disruption risk.”
On top of that, the valuation reset has been remarkably steep: “the median stock in our secular growth screen has experienced a 30% [price-to-earnings] compression.”
The possible turn is that Goldman sees the 10-year Treasury yield dropping by nearly 20 basis points to 4.1% by the close of the year.

Hence, if economic growth cools off, uncertainty remains high, and yields ease off, Goldman feels investors may want to refocus on businesses with “strong idiosyncraticgrowth profiles,” and Nvidia remains a standout in this regard.

Tech and AI stocks have had a shaky start to 2026

Tech and AI stocks have had a rough start to 2026.

The Nasdaq Composite, which underscores big-tech risk appetite, is up just 3.3% year to date, while the S&P 500 has gained 2.6%, according to AP.

In comparison, following ChatGPT’s late-2022 debut, the S&P 500 skyrocketed 24.2% in 2023 and another 23.3% in 2024.

The market sentiment has soured, with valuations looking stretched and investors in show-me mode amid the relentless hyperscaler AI spending.

To complicate matters further, oil prices spiked, inflation worries returned, and the Iran war made risk-on assets harder to hold.

On the flipside, a Trading Economics chart shows spot gold has jumped nearly 12% since the first trading day of 2026, while silver has also jumped about 12.3%.

At the same time, Bitcoin is still down nearly 15% this year, while the dollar index is tracking near six-week lows.

Nvidia stock vs. the S&P 500

Over the past month, Nvidia stock returned 10.33%, compared with the S&P 500’s 5.89%.
Over the past six months, Nvidia stock returned 10.59%, compared with the S&P 500’s 5.27%.
Year to date, Nvidia stock returned 6.63%, compared with the S&P 500’s 2.59%.
Over the past year, Nvidia stock returned 77.25%, compared with the S&P 500’s 30.14%.
Over the past three years, Nvidia stock returned 643.22%, compared with the S&P 500’s 69.73%.
Over the past five years, Nvidia stock returned 1,132.37%, compared with the S&P 500’s 68.40%. Source: Seeking Alpha.