Finboldยท2025-07-07 13:43Core Viewpoint - Citi is becoming more optimistic about the semiconductor sector, raising price targets for Nvidia and AMD as the AI race accelerates [1][6] Nvidia - Nvidia's price target has been increased to $190 from $180, with a Buy rating reiterated by Citi [1] - The total addressable market (TAM) for AI data center semiconductors is now expected to reach $563 billion by 2028, up from a previous estimate of $500 billion [2] - The growth is attributed to stronger-than-expected sovereign investment in AI infrastructure and increasing demand in networking [2] - Networking TAM forecast has been revised to $119 billion from $90 billion, now accounting for 21% of the broader AI data center opportunity in 2028 [3] - Nvidia's networking revenue forecast has been raised by 12% for FY27 and by 27% for FY28, with networking expected to represent around one-fifth of total data center revenue [3] - The rollout of Nvidia's Blackwell platform is on track, with rapid deployments and concerns about chip supply being potentially overstated [4] AMD - AMD's price target has been increased to $145 from $120, while maintaining a Neutral rating [5] - The adjustment is part of the Q2 semiconductor earnings preview, indicating signs of a sector rebound driven by stronger-than-expected demand and ongoing inventory restocking [5] - AMD's raised target suggests potential for upside if the industry's recovery continues [6]