On Wednesday, Citi maintained a positive stance on NVIDIA Corporation (NASDAQ:NVDA), reiterating a Buy rating and a $150.00 price target. The firm's analyst projected NVIDIA's July-Quarter total and data center sales to be in line with expectations, at approximately $28.5 billion and $24.8 billion, respectively.
There is an anticipation of around $1 billion upside to the Street's estimates, although this figure is lower than the $2 billion beat observed in the previous four quarters. This conservative estimate is attributed to supply chain comments and concerns regarding delays of the Blackwell GPUs.
For the October-Quarter, Citi estimates total sales for NVIDIA at $31.9 billion, slightly above the Street's expectation of $31.5 billion. The firm suggests potential sales could reach between $32 billion and $33 billion, based on comments from peers. As NVIDIA prepares to report earnings after the market closes on August 28, investor attention is expected to focus on several key areas.
These include the potential delays of Blackwell GPUs and their impact on the January-Quarter and calendar year 2025, demand for the H100 and H200 models in the second half of 2024, enterprise demand in the context of rising AI agents, updates on networking supply delays and the momentum of Ethernet Spectrum X, as well as the implications of sovereign AI and the risk of additional restrictions on next-generation GPUs in China.
Citi anticipates that the Street's estimates will likely increase for the June and October quarters. The firm also expects comments on Blackwell to reassure investors about NVIDIA's strong outlook for calendar year 2025.
Following these developments, Citi predicts that NVIDIA's stock could reach a new 52-week high. The analyst's commentary underscores a positive outlook for NVIDIA's performance and its potential market trajectory.
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