Shares of Nvidia (NVDA) - Get Report are up Wednesday after Goldman Sachs analysts raised their price target on the chipmaker, citing the gaming business as the catalyst. 

Goldman raised its price target to $192 from $179, representing 11% potential upside from the stock's Tuesday closing price of $172.53.

The stock is up nearly 30% year to date and up 2% to $175.98 Wednesday. 

For the fiscal third quarter ending in October Goldman analyst Toshiya Hari expects the Santa Clara, Calif., company "to deliver strong sequential growth" in the gaming segment, "supported by the normalization in channel inventory and the launch of its new products."

Gaming accounted for more than half Nvidia's second-quarter revenue. Nvidia reported $1.31 billion in revenue from its gaming segment out of $2.58 billion in total revenue for the quarter. 

"In the medium- to long-term, the emergence of cloud gaming and any impact it may have on PC gaming growth will likely remain top of mind for many investors," the analyst wrote.

"[However,] comments from Gigabyte/MSI appear to support our view that latency alone will be a bottleneck for broad-based adoption among Nvidia's target customer base," Hari said.

Nvidia is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.  

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