Citi maintains a purchase score and $300 value goal on Nvidia forward of Might 20 earnings, projecting Q1 income of $80bn, above the $78.6bn Avenue consensus, on robust Blackwell chip demand.
Abstract:
- Citi has reiterated a purchase score and $300 value goal on Nvidia forward of its first-quarter fiscal 2027 earnings due after market shut on Might 20, in keeping with a Tuesday investor be aware from analyst Atif Malik
- The financial institution tasks quarterly income of roughly $80bn, round $1.4bn above the Wall Avenue consensus of $78.6bn, per Citi’s analysis
- Stronger-than-expected demand for Blackwell B300 chips is cited as the first driver of the anticipated beat, with Citi additionally forecasting an 11% quarter-on-quarter income improve to $89bn for the next quarter, in keeping with the be aware
- Citi has revised its GPU unit estimates upward to 11.2 million items, representing 58% progress year-on-year, pushed by greater Blackwell demand alerts together with faster-than-expected transceiver shipments, per the analyst be aware
- The financial institution now fashions full fiscal yr 2027 income of $284bn, up 79% year-on-year, with AI GPU gross sales anticipated to account for between 70% and 80% of Nvidia’s complete knowledge middle income, in keeping with Citi
- Citi raised its estimate for the 2028 knowledge middle semiconductor complete addressable market to $851bn, 16% above its prior forecast, pushed largely by stronger-than-expected demand for application-specific built-in circuits, per the be aware
Citigroup has reaffirmed its bullish stance on Nvidia forward of the chipmaker’s first-quarter fiscal 2027 earnings report, projecting revenues nicely above Wall Avenue’s consensus estimate and elevating its long-term knowledge middle market forecasts by a considerable margin.
Analyst Atif Malik, writing in a Tuesday be aware, maintained a purchase score and $300 value goal on the inventory, a degree that might symbolize a achieve of almost 37% from the place shares closed on Monday. Malik estimates Nvidia will report quarterly income of near $80bn for the interval ending in April, in contrast with the consensus expectation of $78.6bn, implying an outperformance of roughly $1.4bn.
The anticipated beat is attributed primarily to stronger-than-expected demand for Nvidia’s Blackwell B300 structure. Citi revised its GPU unit forecast upward to 11.2 million items for the fiscal yr, a 58% improve year-on-year, reflecting what the financial institution describes as reassuring commentary from administration on the GTC 2026 convention and faster-than-expected transceiver cargo knowledge pointing to accelerated Blackwell adoption.
Waiting for the July quarter, Citi forecasts an additional 11% sequential income improve to $89bn, once more above the Avenue’s $87bn estimate, because the B300 ramp continues. For the total fiscal yr 2027, the financial institution fashions income of $284bn, representing 79% progress year-on-year, with AI GPU merchandise anticipated to account for between 70% and 80% of Nvidia’s complete knowledge middle gross sales. The rest is anticipated to return from networking, standalone central processing items, and software program and providers.
Citi additionally materially upgraded its view of the broader market alternative. The financial institution now estimates the 2028 complete addressable marketplace for knowledge middle semiconductors will attain $851bn, up 16% from its prior forecast of $731bn, with the revision pushed largely by stronger-than-anticipated demand for application-specific built-in circuits utilized in customized AI workloads.
The outcomes are due after market shut on Wednesday, Might 20. Consensus estimates compiled by Searching for Alpha level to adjusted earnings per share of $1.77 and income of $78.89bn. Nvidia has crushed consensus income expectations by greater than $1bn in 9 of the previous twelve quarters, setting a excessive bar for the upcoming print.
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Citi’s bullish pre-earnings stance is prone to reinforce constructive sentiment round Nvidia’s inventory value within the days forward of the Might 20 report. A confirmed income beat of the dimensions Citi anticipates would additional validate premium valuations throughout the AI semiconductor sector and will carry friends uncovered to knowledge middle infrastructure spending. The sharply greater knowledge middle complete addressable market estimate by means of 2028 additionally has implications for customized chip designers and networking gear suppliers, suggesting sustained capital expenditure from hyperscalers past near-term GPU cycles.
