Huan Qiu Wang·2025-07-08 06:14Core Viewpoint - Citigroup has raised its target price for Nvidia to $190 per share, indicating a potential upside of approximately 15% from last Thursday's closing price, as Nvidia's market capitalization approaches $4 trillion and its stock has risen 12% over the past month [1][3] Group 1: Market Demand and Growth Projections - There is a significant increase in demand for AI infrastructure from sovereign nations, with analysts predicting that this demand could contribute billions in revenue by 2025 and expand further in 2026 [3] - Citigroup has revised its Total Addressable Market (TAM) expectations for the AI computing market from $500 billion to $563 billion by 2028, reflecting a 13% growth, and for the networking equipment market from $90 billion to $119 billion [3] Group 2: Nvidia's Role and Product Development - Nvidia is positioned as a core player in the construction of national-level AI systems, participating in nearly all sovereign AI infrastructure projects [3] - The Nvidia Blackwell GB200 chip is becoming the central power for AI clusters, with deployment accelerating and supply chain bottlenecks easing, while the next-generation GB300 chip is expected to facilitate a smooth transition [3] Group 3: Financial Projections - Citigroup forecasts a 5% increase in Nvidia's data center revenue for the fiscal year 2027 and an 11% increase for fiscal year 2028, with networking equipment sales expected to grow by 12% and 27% respectively [3] - The platform allocation rate is projected to reach 20%, with gross margins stabilizing around 75% by the end of the year [3]