Citi maintains NVIDIA stock Buy rating, $150 price target

On Tuesday, Citi analyst Atif Malik confirmed a Buy rating on NVIDIA (NASDAQ:NVDA) stock, maintaining a $150.00 price target. The endorsement follows NVIDIA CEO Jensen Huang’s Sunday keynote at Computex in Taipei, where he emphasized the company’s commitment to advancing General AI through the use of GPU-powered data centers. According to InvestingPro data, NVIDIA has achieved remarkable revenue growth of 114.2% over the last twelve months, cementing its position as a prominent player in the Semiconductors industry with an excellent financial health score.

The analyst highlighted three significant announcements from the event: the unveiling of NVLink Fusion, new advancements in physical AI with NVIDIA’s Isaac GR00T N1.5 foundation model, and the introduction of the enterprise-grade RTX PRO 6000 Blackwell servers. These developments are seen as strategic moves by NVIDIA to expand its Total (EPA:TTEF) Addressable Market (TAM), either by establishing a foothold in emerging markets like Physical AI or by securing a share in the fast-growing AI infrastructure sector, particularly ASIC data centers. With a perfect Piotroski Score of 9 and strong cash flows, NVIDIA appears well-positioned to execute these strategic initiatives. Dive deeper into NVIDIA’s financial health metrics and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.

Furthermore, NVIDIA announced that the GB300 would begin shipping in the third quarter, aligning with Citi’s projections. The analyst’s models anticipate approximately 1 million GB300 units or around 15,000 GB300 NVL servers to be integrated into the market in calendar year 2025. This forecast is consistent with the firm’s research and checks within Asia.

NVIDIA’s continued innovation and strategic positioning within the AI and data center markets are key factors underpinning Citi’s positive outlook on the company’s stock. The firm’s analysis suggests a steady trajectory for NVIDIA as it capitalizes on the growth opportunities presented by these technological advancements.

In other recent news, CoreWeave Inc. has been assigned a ’B+’ issuer credit rating by S&P Global Ratings, with a stable outlook. The company is issuing $1.5 billion of senior unsecured notes, rated ’B’ at the issue level. CoreWeave’s revenue visibility is supported by long-term contracts, with a reported revenue backlog of $25.9 billion as of March 31, 2025. However, the company faces potential risks due to significant supplier and customer concentration, with NVIDIA providing essential GPUs and Microsoft (NASDAQ:MSFT) accounting for 62% of revenue in 2024.

Meanwhile, NVIDIA Corporation has been the focus of several analyst reports. Morgan Stanley (NYSE:MS) reiterated its Overweight rating on NVIDIA, highlighting the introduction of NVlink Fusion and RTX PRO servers as significant developments. BofA Securities also maintained a Buy rating, emphasizing NVIDIA’s expanding AI product portfolio and the potential benefits from recent Middle East deals. Conversely, Raymond (NSE:RYMD) James reaffirmed an Underperform rating, citing potential challenges from the H20 export restriction and the impact on revenue growth.

NVIDIA is also making strategic moves internationally, partnering with Foxconn (SS:601138) and the Taiwan government to construct a new supercomputer. Despite facing a $5 billion revenue headwind due to U.S. Commerce Department restrictions, analysts remain optimistic about NVIDIA’s prospects in the latter half of the year. The company’s focus on expanding its enterprise solutions and maintaining strong gross margins continues to be a point of interest for investors.

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