Nvidia rises as Citi reiterates buy, boosts estimates on rising GPU demand
BING-JHEN HONG
Nvidia (NASDAQ:NVDA) shares rose 0.5% in pre-market trading on Monday as investment firm Citi reiterated its buy rating and raised its earnings estimates on the semiconductor giant due to rising GPU demand.
Analyst Atif Malik, who also boosted his per-share price target to $600 from $520, noted there are "multiple" new data center orders of $2B or more. In addition, Malik said he has a better understanding of the competition that custom ASIC and AMD (AMD) chips are providing in the data center space, as well as the overall rise of generative AI and its impact.
As such, Malik raised his earnings per share estimates for fiscal 2024, 2025 and 2026 by 6%, 38% and 30%, respectively.
"We continue to see favorable risk-reward on accelerating Y/Y data center sales through the year with China ban, slower macro impact on gaming demand, and competition as key near- to long-term downside risks," Malik wrote in an investor note. 
A consensus of analysts estimate Nvidia (NVDA) will report quarterly earnings of $2.06 per share on $11.04B in revenue.
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