Citi expects Nvidia stock to rise by up to 27%

Shares of chip giant Nvidia are expected to rise by up to 27%, according to Citi, with the stock hitting a $175 price target by early 2025, as founder and CEO Jensen Huang prepares to deliver his keynote speech at CES 2025.

The Consumer Electronics Show will be held from January 7 to 10, and Huang is scheduled to deliver the opening address on January 6.

According to CNBC, Citi said the speech will be followed by a Q&A session for financial analysts on January 7.

For his part, Citi analyst Atif Malik confirmed: “We expect a positive and encouraging atmosphere at CES in January, as we expect Blackwell’s sales forecast to rise and management to talk about the reasoning led by the industrial demand turnaround for companies and robotics.”

At CES, Nvidia is likely to raise its Blackwell product sales forecast as it ramps up production of its next-generation AI chip.

Additionally, Malik expects Nvidia management to tell analysts that its profit margins are likely to bottom out in the April quarter and move higher from there, as well as talk of “inference-based reflection” in AI robots for use cases in warehouses, manufacturing and even humanoid robots.

Also read: Jensen Huang: Nvidia’s AI advantage will automate $50 trillion industries

Companies like Tesla, Figer.AI and Boston Dynamics have raced to develop humanoid robots in recent years, and Nvidia’s GPU chips have taken center stage in the making of those devices.

At Nvidia’s annual GTC conference in March 2024, Huang welcomed nine different humanoid robots to the stage that were powered in part by Nvidia chips.

Citigroup rates Nvidia shares a “buy” and raises its price target to $175 from $170 after the company reported third-quarter earnings. Nvidia shares are up 176% year-to-date amid the company’s AI-powered GPU chip wave.