Bolstered by momentum in its gaming business, Goldman Sachs is bullish on Nvidia, the firm said Wednesday.

Goldman Sachs raised its price target on chipmaker Nvidia to $192 from $179. The stock closed Tuesday at $172.53 per share, up nearly 30% this year.

Goldman likes Nvidia the best compared to some of its semiconductor peers. While the firm has a buy rating on Nvidia, it has a neutral rating on Advanced Micro Devices and a sell rating on Intel.

"We expect the company to deliver strong sequential growth in FY3Q (Oct) in the Gaming segment supported by the normalization in channel inventory and the launch of its new products," said Goldman Sachs' Toshiya Hari in a note to clients.

Gaming is Nvidia's largest segment, producing $1.31 billion in revenue in its second-quarter, reported last month. While the competitive landscape in the second half of the fiscal year may be more challenging that in the past, Hari said Nvidia's gaming segment will continue to grow.

Hari said in the long-term, the move into cloud gaming will be top of mind for Nvidia investors.

Nvidia's second biggest segment is its data center segment, which missed estimates for its $655 million in revenue in the second quarter. However, Hari said improving trends will drive growth going forward.

"We see yoy segment revenue growth reverting to positive territory in FY4Q (Jan) and accelerating further into 1HFY21," said Hari.

Goldman expects overall 27% year-over-year revenue growth for Nvidia.

—with reporting from CNBC's Michael Bloom.