Buy Nvidia shares on the dip because its 'secular growth story' is still intact, Goldman Sachs says

Nvidia founder, President and CEO Jen-Hsun Huang delivers a keynote address at CES 2017 at The Venetian on Jan. 4, 2017 in Las Vegas.
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Investors should buy Nvidia because earnings will significantly top expectations next year due to new market opportunities, according to Goldman Sachs, which reiterated its buy rating on the graphics chipmaker. The stock is also on the firm's "conviction buy" list.

Nvidia shares are up 220 percent in the past 12 months through Friday on the successful launch of its new Pascal graphics chips. However, the stock is down 13 percent since the company's fourth-quarter earnings report Feb. 9.

After the recent decline "we see this as an opportunity to add to positions (or to initiate positions for those who missed the rally in 2016). Most importantly, we believe the multiyear secular growth story in gaming, data center and automotive remains intact," analyst Toshiya Hari wrote in a note to clients Monday. "We still see material upside to Street estimates."