Goldman Sachs Boosts Hesai Price Target After Strong Margin Performance

Goldman Sachs revised its outlook for Hesai Group (NASDAQ:HSAI) on May 27, reiterating its Buy rating and increasing the price target from $20.40 to $23.30. According to analyst Tina Hou, Hesai’s first-quarter 2025 results were impressive, with revenue meeting and net profit surpassing projections. This was primarily due to a larger gross margin and a lower operating expense.

Goldman Sachs Boosts Hesai Price Target After Strong Margin Performance

Hesai Group (NASDAQ:HSAI) exceeded Goldman Sachs’ expectation of 39.5% with a gross margin of 41.7% for the quarter, a 3.0 percentage point increase from the previous year. The increase in revenue from engineering services was primarily responsible for this improvement.

Hesai’s revenue guidance for the second quarter of 2025 was also 3% higher than Goldman Sachs’ earlier projections. The anticipated revenue of RMB 680 million to RMB 720 million is a notable rise year-over-year and quarter-over-quarter.

Hesai Group (NASDAQ:HSAI) is a Chinese technology company that develops and markets lidar devices, including sensors. Its products are mostly utilized in the industrial, robotics, ADAS, and vehicle automation industries.

While we acknowledge the potential of HSAI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HSAI and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.