Nvidia's Sovereign AI Success Fuels Stock Optimism
Nvidia (NVDA) is in the spotlight after a bullish assessment from Citi analyst Atif Malik. The firm reiterated its "Buy" rating on NVDA and set a price target of $190, implying a potential upside of 21%.
Key Takeaways from the Analyst Note
- Buy Rating: Citi maintains a "Buy" rating on Nvidia.
- Price Target: The price target is raised to $190.
- Sovereign AI Demand: Nvidia is well-positioned to benefit from state-backed AI investments.
- Market Growth: The AI compute market is projected to reach $563 billion by 2028.
According to Malik, sovereign demand is already significantly contributing in 2025 and is expected to grow next year. He projects growth in Nvidia's data center and networking sales. Citi emphasizes Nvidia's central role in sovereign deals.
Truist analysts also advise against reducing exposure to Nvidia at current levels. Overall, Wall Street remains positive on Nvidia's prospects for the second half of 2025. According to Barchart, NVDA has a "Strong Buy" consensus rating.
