In a report released today, Atif Malik from Citi maintained a Buy rating on Nvidia, with a price target of $190.00.
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Atif Malik has given his Buy rating due to a combination of factors that highlight Nvidia’s strong growth potential in the AI sector. The expansion of the total addressable market (TAM) for AI, particularly in data center semiconductors, is a significant driver. Malik anticipates that by 2028, the AI TAM will reach $563 billion, which is a notable increase from previous estimates. This growth is fueled by higher-than-expected demand for AI from sovereign entities and enterprises, which is expected to boost Nvidia’s data center sales significantly.
Furthermore, Malik points out that Nvidia is well-positioned to capitalize on emerging opportunities in AI networking, with an increase in networking TAM and sales projections. The company’s gross margin is also expected to normalize to mid-70s%, reflecting operational efficiencies and successful product transitions. Despite potential geopolitical risks, such as trade restrictions, Malik remains confident in Nvidia’s ability to manage these challenges effectively, reinforcing his positive outlook on the stock.
In another report released on July 2, Mizuho Securities also reiterated a Buy rating on the stock with a $185.00 price target.
Based on the recent corporate insider activity of 111 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.