Tuesday
Citi analysts have reiterated a Buy rating on NVIDIA (NASDAQ:NVDA) shares with a price target of $163.00. The firm’s analysis suggests that despite a 13% decline in NVIDIA’s stock price following recent earnings, the investment merits remain intact. Concerns have risen among investors due to potential macroeconomic challenges, including restrictions in China and tariffs, which have prompted a reassessment of risks associated with other markets, notably Singapore.
Singapore’s significance to NVIDIA’s business is highlighted by its role in customer billing, accounting for 18% of the company’s projected total sales for fiscal year 2025. This billing practice is typical within the industry, where products are often shipped to locations different from where invoicing is centralized. Actual shipments to Singapore, however, represented less than 2% of the total sales for the same period, as detailed in NVIDIA’s 10-K filing. For deeper insights into NVIDIA’s geographical revenue distribution and other key metrics, InvestingPro offers comprehensive financial analysis through its Pro Research Reports, available for over 1,400 US stocks.
Despite the downward pressure on the stock and the ongoing concerns about the impact of AI diffusion rules and tariffs on gross margins, Citi’s stance remains positive. The analysts believe that the current stock price is trading below historical lows, indicating an attractive risk-reward scenario for investors.
The firm acknowledges that the market is seeking a resolution to the uncertainties stemming from AI restrictions and their effects on NVIDIA’s financial performance. Nonetheless, Citi maintains its Buy rating, suggesting confidence in the stock’s potential once these overhangs are addressed.
In other recent news, NVIDIA Corporation has been a focal point for analysts and investors alike. The company’s recent earnings report revealed better-than-expected results, with robust adoption of its Blackwell products playing a significant role. Despite a slight decrease in gross margin guidance to 71% in the first quarter, NVIDIA anticipates an increase to the mid-70s by the end of the fiscal year as production scales. JPMorgan has maintained an Overweight rating on NVIDIA, setting a price target of $170, citing strong customer spending on AI and data center initiatives as key drivers. Benchmark analysts also retained a Buy rating with a $190 target, highlighting NVIDIA’s financial performance and product adoption.
In other developments, CoreWeave, a cloud computing provider in the AI industry, is reportedly preparing for an IPO targeting a valuation of over $35 billion. The company, which counts NVIDIA among its investors, recently announced the availability of NVIDIA Blackwell in the cloud, marking a significant step in AI reasoning capabilities. Meanwhile, Amazon (NASDAQ:AMZN)’s CEO Andy Jassy discussed the increasing demand for AI chips, noting that NVIDIA remains a crucial partner. Jassy emphasized the potential for Amazon to monetize additional chip capacity, with a focus on utilizing a variety of chips, including those from NVIDIA. These recent developments underscore NVIDIA’s strategic positioning in the rapidly evolving tech landscape.
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