Citigroup raises NVIDIA's target price to $300, first quarter revenue guidance exceeds expectations

Citigroup published a research report stating that although NVIDIA (NVDA.US) guided that revenue for the first fiscal quarter ending in April will exceed expectations by $5 billion, reaching $78 billion driven by exponential growth in demand for generative artificial intelligence, its stock price remained roughly flat after the market closed. The firm believes that the GTC conference held in mid-March will be a positive event for the stock and expects NVIDIA to showcase Groq SRAM low-latency inference, central processing units, and optical networks. Additionally, early visibility of sales for 2027 may become a catalyst for the stock price.

The firm raised its sales forecasts for fiscal years 2027 and 2028 by 4%, reflecting better-than-expected demand visibility for Blackwell and Rubin. It also introduced its first sales forecast for fiscal year 2029 at $566 billion and expects NVIDIA's sales compound annual growth rate from 2025 to 2028 to reach 35%. Earnings per share forecasts for fiscal years 2027 and 2028 were raised by 2% to $8.02 and $10.20, respectively.

Citigroup has given NVIDIA a "Buy" rating, raising the target price from $270 to $300