Nvidia has established a leadership position in artificial intelligence semiconductors that has sent its stock roaring this year. Citi analysts say the stock is going further, boosted by increased data center investment and its advantages over potential competitors.
Citi analysts raised their target price on Nvidia (ticker: NVDA) to $520 from $420 previously, maintaining a buy rating. They said this was based on a projected 35x P/E ratio for 2025, with a $600 bullish case at P/E…
has established a leadership position in artificial intelligence semiconductors that has driven its stock this year.
analysts argue the stock is going further, boosted by rising data center investment and its advantages over potential competitors.
Citi analysts raised their price target on
(ticker: NVDA) at $520 from $420 previously, maintaining a buy rating. They said this was based on a projected price-earnings multiple of 35 times for 2025, with a bullish case of $600 at a price-earnings multiple of 40.
Nvidia shares rose 0.7% in premarket trading to $457.70. Its shares have more than tripled in value in 2023 so far.
“We continue to see favorable risk-reward on the acceleration in Y/Y (year-over-year) data center sales throughout the year,” Citi analysts wrote.
Analysts support the stock despite some risks, including tighter US restrictions on exports to China and future competition.
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Nvidia has become the undisputed leader in AI chips due to its specialization in graphics processing units, or GPUs, but rivals such as
(AMD) also aim to take advantage of a multi-billion dollar opportunity in supplying chips to customers looking for potential alternatives.
Nvidia’s dominance is set to continue due to its advantage in optimizing software for GPU computations, its network portfolio and superior hardware, according to Citi.
Citi analysts said they expect Nvidia to maintain a substantial edge over AMD in AI performance and maintain a roughly 90% market share in the related graphics processing unit market. to AI for the next two to three years, which they are planning. reach $150 billion in 2027.
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Write to Adam Clark at adam.clark@barrons.com
