On Monday, Citi reaffirmed its buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock, with a price target of $1,030. The endorsement follows a share price decline after the recent GPU Technology Conference (GTC), attributed to investors taking profits.
The firm's analysis suggests that NVIDIA's demand visibility now extends into the first half of 2025, with projections for GPU unit sales in line with their expectations of 4.3 million units in 2024 and 5.2 million units in 2025. This forecast aligns with Citi's base case model for the company.
Citi anticipates that forthcoming remarks from key suppliers in NVIDIA's supply chain could serve as positive triggers for the company's stock. These include statements from primary foundry and HBM memory suppliers during their earnings calls and at the upcoming Computex Taiwan event.
At the Computex conference, scheduled for June 2nd, NVIDIA CEO Jensen Huang is set to deliver a keynote speech. Citi suggests that insights shared by Huang could further act as catalysts for NVIDIA's stock performance.
The firm's position remains optimistic about NVIDIA's prospects, as indicated by the maintained buy rating and price target, reflecting confidence in the company's market outlook and potential growth drivers.
InvestingPro Insights
As NVIDIA Corporation (NASDAQ:NVDA) continues to navigate the dynamic tech landscape, recent data from InvestingPro offers a deeper dive into the company's financial health and market position. With a towering market capitalization of $2170.0B, NVIDIA stands as a titan in the semiconductor industry. The company's P/E ratio, while high at 72.95, is considered low relative to its near-term earnings growth, suggesting potential for investors looking at growth-adjusted valuation metrics. Moreover, NVIDIA's impressive revenue growth of 125.85% in the last twelve months signals strong business expansion, which aligns with Citi's positive outlook.
InvestingPro Tips highlight NVIDIA's status as a prominent player in the Semiconductors & Semiconductor Equipment industry and its consistent dividend payments over the past 13 years. These factors, combined with the company's ability to cover interest payments with cash flows, paint a picture of financial resilience and shareholder value. For those seeking more detailed analysis and additional insights, InvestingPro offers 20 more tips on NVIDIA, available through an exclusive offer. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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