Nvidia shares, which have tripled in 2016, will keep rallying next year, Goldman Sachs says

Nvidia's surge higher

Investors should buy Nvidia because earnings will top expectations next year due to new market opportunities, according to Goldman Sachs, which reiterated its buy rating and added the chip company to its Americas conviction buy list.

"We continue to view NVDA as a unique growth story in semis, levered to positive secular trends in gaming, VR (virtual reality), AI (artificial intelligence)/ML (machine learning) and automotive," analyst Toshiya Hari wrote in a note to clients Tuesday.

Nvidia shares are up 208 percent this year through Monday due to the successful launch of its new Pascal graphics chips.