Citi Analyst Adjusts Nvidia (NVDA) Price Target Due to Capex Concerns | NVDA Stock News

Author's Avatar
Apr 11, 2025
Article's Main Image

Citi's analyst Atif Malik has revised the firm's price target for Nvidia (NVDA, Financial), decreasing it from $163 to $150. Despite this adjustment, Malik maintains a Buy rating on Nvidia's shares. This change in target is primarily driven by anticipated lower spending on graphics processing units in 2025 and 2026. The revision aligns with the firm's updated expectations for hyperscaler capital expenditure, particularly in response to reduced spending from Microsoft (MSFT) and potential slowdowns in enterprise investments.

The analysis takes into account the economic uncertainty stemming from ongoing trade tensions, which poses a risk of increased GPU costs. Despite these challenges, Citi believes Nvidia's stronghold in technology innovation and the relatively inelastic demand for its AI GPUs will help the company mitigate some of the rising costs associated with the trade war. Nvidia's ability to pass on part of these costs to its customers is expected to cushion its financial impact.

Wall Street Analysts Forecast

1910638950821818368.png

Based on the one-year price targets offered by 51 analysts, the average target price for NVIDIA Corp (NVDA, Financial) is $169.89 with a high estimate of $235.92 and a low estimate of $115.00. The average target implies an upside of 57.93% from the current price of $107.57. More detailed estimate data can be found on the NVIDIA Corp (NVDA) Forecast page.

Based on the consensus recommendation from 63 brokerage firms, NVIDIA Corp's (NVDA, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for NVIDIA Corp (NVDA, Financial) in one year is $265.61, suggesting a upside of 146.92% from the current price of $107.57. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NVIDIA Corp (NVDA) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.