Citigroup firmly bullish on NVIDIA, expecting gross margin to improve
Citigroup analysts raised NVIDIA's target price from $150 to $180 and maintained a "Buy" rating. NVIDIA's first-quarter performance met expectations, with second-quarter revenue projected at $45 billion, exceeding Citigroup's expectations. The company's management confirmed a gross margin target of 75%. Wall Street analysts gave NVIDIA a "Strong Buy" rating, with an average target price of $173.19
According to Zhitong Finance APP, NVIDIA (NVDA.US) remains one of the most worthwhile semiconductor stocks to buy in the U.S. Citigroup analysts raised NVIDIA's target price from $150 to $180 and maintained a "buy" rating.
NVIDIA's previously announced first-quarter results met expectations. The company expects second-quarter revenue to be $45 billion, about $1 billion higher than Citigroup's forecast. Strong performance and guidance indicate that the company has effectively navigated the difficult transition following U.S. restrictions on chip exports.
NVIDIA's Blackwell product line generated $24 billion in sales, exceeding the expected $20 billion. The company's management also confirmed its goal of achieving a gross margin of around 75% later this year, reflecting confidence in the improved profitability of Blackwell.
Citigroup also adjusted its earnings per share forecast for NVIDIA, keeping the growth for fiscal year 2026 in line with previous expectations, raising the forecast by 9% for fiscal year 2027 and by 5% for fiscal year 2028. These changes reflect expectations for higher gross margins.
Data from Tipranks shows that overall, Wall Street analysts give NVIDIA a "strong buy" rating, with an average target price of $173.19, which is 20% higher than the current stock price.
As of Tuesday's market close, NVIDIA fell 0.4% to $144.12
