Citi Analyst Raises Nvidia Price Target to $190, Citing AI Market Expansion

Citi's top analyst, Atif Malik, raises Nvidia's price target to $190 from $180, citing a 13% increase in the total addressable market (TAM) of artificial intelligence (AI) data center semiconductors for 2028. Malik expects Nvidia to report higher revenues from compute and networking. He has a 73% success rate and an average return per rating of 30.60%.

Citi's top analyst, Atif Malik, has raised his price target for Nvidia from $180 to $190, citing a 13% increase in the total addressable market (TAM) for AI data center semiconductors by 2028 [1]. Malik expects Nvidia to report higher revenues from both compute and networking segments. The analyst attributes this bullish outlook to the growing demand for sovereign AI, which refers to nations' efforts to produce and control their own AI infrastructure and data.

Malik's analysis indicates that sovereign AI demand is already contributing up to billions of dollars in 2025 and is expected to increase in 2026. He notes that Nvidia has a line of sight to tens of gigawatts (GW) of enterprise and sovereign AI factory buildouts over the next couple of years, with the company involved in nearly every sovereign deal. The analyst modeled Nvidia's 2028 TAM for data center, semiconductors, and AI businesses to reach $563 billion, a 13% increase from his prior estimate [1].

The analyst also lifted his expectations for Nvidia's networking segment to $119 billion from $90 billion, citing larger AI training clusters and emerging scale-up intra-networking opportunities. Malik's report highlights the rapid pace of deployments for Nvidia's GB200 and the smooth transition expected for GB300, which is likely to produce 50 times more AI content compared to its predecessor, Blackwell [1].

The surge in demand for Nvidia's state-of-the-art new-generation Blackwell chips has contributed to a 69% year-over-year sales growth to $44.1 billion in the fiscal first quarter, which ended on April 27 [2]. This growth is supported by increased developer adoption of the CUDA platform and the AI revolution in self-driving cars and autonomous robots. Major cloud computing companies like Amazon.com, Inc. and Alphabet Inc. have purchased Nvidia's graphics processing units (GPUs), further boosting the company's prospects.

Despite potential headwinds from President Trump's tariffs and export restrictions on AI chips to China, Nvidia is well-positioned to benefit from the worldwide demand for AI capabilities. Malik's bullish thesis on Nvidia is supported by a 73% success rate and an average return per rating of 30.60% [3].

References:
[1] https://www.cnbc.com/2025/07/07/citi-raises-price-target-on-nvidia-citing-expanding-ai-opportunity.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/AMZN/pressreleases/33243730/the-zacks-analyst-blog-highlights-palantir-nvidia-microsoft-amazoncom-and-alphabet/
[3] https://www.cryptopolitan.com/industrial-giants-rush-to-data-center-market/