Analyst Atif Malik from Citi maintained a Buy rating on Nvidia and increased the price target to $270.00 from $220.00.
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Atif Malik has given his Buy rating due to a combination of factors that highlight Nvidia’s strong growth potential and strategic positioning in the AI and data center markets. The company’s data center segment is a key driver of sequential growth, with significant contributions from partnerships and advancements in networking technologies. Nvidia’s management anticipates networking to become a larger portion of AI infrastructure spending, with major tech companies deploying large-scale AI factories, which supports the company’s revenue growth.
Furthermore, Nvidia’s strategic initiatives, such as the Vera Rubin ramp and the ongoing demand for older generation products like Hopper, indicate sustained market value. The company is also effectively managing its gross margins and supply chain to maintain profitability. Additionally, Nvidia’s focus on energy efficiency and the establishment of data centers in energy-abundant areas align with industry trends, ensuring continued growth without power constraints. These factors collectively underpin Malik’s confidence in Nvidia’s future performance.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $250.00 price target.