Top global banker Citi Bank recently revised its price target for Nvidia stock and has become bullish on its prospects. The tech stock is the most sought-after asset this year from both retail investors and institutional funds. Its profits have outperformed the broader market and continue to attract bullish sentiments.
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The leading tech stock closed Tuesday’s bell in the red and fell to the $131 price range. It dipped by more than six points, shedding close to 4.5% in the day’s trade. Investors see every dip in the chipmaker stock as a buying opportunity, as a bull run could make it touch new highs. Citi Bank has given a ‘buy’ call for Nvidia stock, citing that it could deliver decent returns in the short term.
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Buy Nvidia Stock Now: States Citi Bank Analyst
Source: Banking Dive
Citi Bank financial analyst Atif Malik has rated Nvidia stock ‘buy’. He wrote that the tech giant could increase its sales by 100% next year, including GPU sales that will grow 118%. The firm is also heavily investing in the Artificial Intelligence (AI) sector and plans to outperform the competition.
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According to Citi Bank’s revised price prediction, Nvidia could reach the $150 mark in the short term. That’s an uptick and return on investment (ROI) of approximately 15% from its current price of $131. Therefore, if the forecast is accurate, an investment of $1,000 could turn into $1,150 in the near term.
“We estimate Nvidia GPU compute sales to grow 118% and 84% year-over-year in calendar years 2024 and 2025, respectively, with hyperscaler sales increasing 100% and 67% during the same period,” Malik noted. Investors are already taking entry positions in Nvidia during the dip as its price could be higher in the next 12 months.