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Citi maintains buy, $1,260 stock PT on NVIDIA, citing Gen AI advancements

Published 03/06/2024, 12:42
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On Monday, Citi reaffirmed its positive stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a price target of $1,260.00. The endorsement follows a keynote by NVIDIA's CEO Jensen Huang on Sunday, where he emphasized the company's dedication to advancing General AI through AI factories and Blackwell-powered data centers, as presented at Computex in Taipei.

During the event, NVIDIA unveiled several significant developments, including introducing new Blackwell systems such as the GB200 NVL2, the Blackwell-enabled NVIDIA MGX, and the Spectrum-X's broad adoption with a one-year cadence. Additionally, the company announced the availability of NVIDIA Inference Microservices (NIMs), which have already garnered the support of over 150 partners.

The announcements also included NVIDIA filling some gaps in its one-year product cadence, with the official unveiling of the Rubin platform, set to launch in 2026. This platform is part of NVIDIA's strategy to expand its accelerated computing Total Addressable Market (TAM), valued at over $1 trillion. The TAM spans from AI networking to the server market, which CPUs have traditionally dominated.

Citi's commentary highlighted the significance of these announcements, describing them as a clear illustration of NVIDIA's efforts to capitalize on its dominance in AI acceleration and to establish a strong foothold in a largely untapped market segment. The firm's continued Buy rating indicates confidence in NVIDIA's strategic direction and its potential for growth in the accelerated computing space.

InvestingPro Insights

As NVIDIA Corporation (NASDAQ:NVDA) continues to make headlines with its strategic advancements in AI and accelerated computing, the latest data from InvestingPro provides a deeper financial perspective on the company. NVIDIA boasts a robust Market Cap of approximately $2.69 trillion USD, reflecting its significant presence in the tech industry. The company's P/E Ratio stands at 62.94, which, while high, is supported by a substantial Revenue Growth of 208.27% over the last twelve months as of Q1 2025. This growth trajectory is further emphasized by the company's Gross Profit Margin of 75.29% during the same period, indicating strong profitability.

InvestingPro Tips highlight that NVIDIA has a perfect Piotroski Score of 9, suggesting a very healthy financial state, and analysts are anticipating sales growth in the current year. Additionally, 37 analysts have revised their earnings upwards for the upcoming period, signaling optimism about NVIDIA's financial performance. For readers looking to delve into more nuanced financial analysis, InvestingPro offers additional tips on NVIDIA's stock, which can be accessed with the exclusive coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

With NVIDIA trading near its 52-week high and having demonstrated a high return over the last year, investors are closely watching the company's performance. The strategic moves discussed by Citi, coupled with NVIDIA's solid financial metrics, paint a picture of a company poised for continued success in a rapidly expanding market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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