Citi raises Nvidia price target on strong demand from sovereign AI

Citi upgrades Nvidia price target to $190 per share, anticipating a 15% upside driven by increased AI infrastructure demand from sovereign governments. Analysts predict Nvidia’s involvement in billions of dollars in sovereign deals by 2025, contributing to a projected $563 billion AI compute TAM by 2028. Networking TAM also expected to rise.

Nvidia’s Blackwell GB200 chips power AI clusters, with deployment accelerating and supply chain concerns easing. Citi projects data center revenue to grow 5% in FY 2027 and 11% in FY 2028, with networking sales surging 12% and 27%. Gross margins forecast to expand into mid-70% range by year-end.

Bank warns of downside risks, including export restrictions under a possible second Trump administration. Despite concerns, the AI gold rush continues, with Nvidia poised for significant sovereign and enterprise AI factory buildouts in the coming years.

Read more at Yahoo Finance: Citi lifts Nvidia’s price target on booming sovereign AI demand