Nvidia Scores Another Sovereign AI Win. How Should You Play NVDA Stock Here?

Nvidia (NVDA) shares are in focus after Atif Malik – a senior Citi analyst – issued a bullish note in favor of the California-based artificial intelligence company. 

Malik reiterated his “Buy” rating on NVDA on Monday and raised the price target to $190, which signals potential upside of another 21% from current levels. 

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

At the time of writing, Nvidia stock is trading just below its record high of $160 – with continued gains expected to make it the world’s first $4 trillion company in the days ahead. 

www.barchart.com

Nvidia Stock to Extend Gains on Sovereign AI

NVDA shares have already returned more than 65% over the past three months – but Citi remains bullish as ever on the chipmaker primarily because it’s best-positioned to benefit from state-backed investments in AI.

In his research note, Atif Malik agreed that sovereign demand is “already contributing billions” in 2025 – but said it’s well within reason to expect a further increase next year.

Malik now sees Nvidia’s data center and networking sales growing as much as 5% and 12%, respectively, in FY 2027. Moreover, the company’s gross margins will normalize around 75% over the next six months, he added. 

Easing Supply Chain Troubles Could Help NVDA Shares

Citi continues to recommend owning Nvidia shares because the multinational sits right at the heart of “essentially every sovereign deal”. 

The investment firm now expects the AI compute total addressable market (TAM) to hit $563 billion by 2028 – while the networking TAM is seen climbing to $119 billion within the next three years. 

According to Malik, investors should stick with the chips giant as supply chain bottlenecks have eased as well – paving the way for the Blackwell ramp in the back half of 2025. 

Note that Truist analysts also advised against cutting exposure to the AI stock at current levels on Monday. 

Wall Street Continues to Recommend Buying Nvidia

Sovereign AI keeps the rest of Wall Street positive on Nvidia stock for the second half of 2025 as well. 

According to Barchart, the consensus rating on NVDA shares currently sits at “Strong Buy” with the mean target of about $177 indicating potential upside of more than 13% from here. 

www.barchart.com

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.