"I just like the stock..." - Roaring Kitty Citi Analysts

If you think Nvidia’s stock chart looks parabolic now, Citi basically just handed Jensen Huang a flamethrower and said, “Go nuts.” Wall Street’s favorite chip dealer just got its price target juiced to $190 by Citi, dangling an extra 15% upside in front of anyone who hasn’t already mortgaged their soul for the stock. Why? Because of sovereign demand, that’s why. 

(Source: Giphy) 

In short, Nvidia (+11% this month, currently within spitting distance of a $4T market cap) is now the official vending machine for any government with a fragile ego and a budget surplus. And Citi now, sees Nvidia not just eating the AI data center TAM (Total Addressable Market), but devouring every last drop of it. For instance, Nvidia’s 2028 addressable market estimate for AI compute swelled to $563 billion (yep, up 13% from last quarter, casual), and networking TAM is now $119 billion. 

(Source: Yahoo Finance) 

For more context, Citi claims sovereign demand is already dragging in billions for 2025, with 2026 shaping up to be even more ridiculous. Nvidia, with its Blackwell GB200 chips, has managed to insert itself into “essentially every sovereign deal.” If you’re a government looking to build an AI cluster the size of a small moon, you’re calling Jensen… or at least his ghostwriter.

Additionally, Nvidia’s revenue forecasts are now on performance enhancers, too. Citi expects data center revenue growth of 5% in FY 2027 and 11% in FY 2028, with networking sales going full roid rage (12% and 27% for those years). Gross margins? Citi says mid-70% is the new normal. Reminder: those are margins that scream Pablo Escobar levels, and the attach rate for high-performance networking is now 20%. If you’re wondering whether those numbers are sustainable, so is everyone else who missed the first five Nvidia splits.

(Source: Giphy) 

However, with that said, there is one tiny, nuclear-orange asterisk: Trump 2.0 could show up with another ban hammer, especially for countries like Malaysia and Thailand, thanks to Bloomberg’s latest “where’s Waldo” on GPU shipments. Citi flagged it as a risk, but honestly, the market is acting like it already snorted that headline and moved on. The China ban is obviously baked in, and the new “diffusion rules”? Well, they’re not happening… for now. 

So the Citi thesis boils down to this: AI gold rush, but with government budgets and absolutely no adult supervision. Nvidia’s got line of sight to tens of gigawatts of buildouts, and Citi’s math is based on a 30x P/E multiple. Translation: Tell me we are in a bubble without telling me we are in a bubble.

(Source: Giphy) 

In the end, Nvidia is once again the main character of big tech, and all things AI, while Citi’s basically dared the entire market to call this a top. Of course, nothing is for certain, and Black Swan events have their way of ripping faces off when we least expect it. But for now, Nvidia is sill the hype. Meaning, keep your eyes on this, and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.