Why Nvidia Could Surge Another 29% by January, According to Citi

Nvidia (NVDA) is currently on a “positive catalyst watch” by Citi (C) analysts, as reported by Business Insider, with expectations that the stock could see a significant rise of up to 29% to a target of $175. This optimism is largely pinned on the upcoming CES 2025, where Nvidia’s founder and CEO, Jensen Huang, will take the stage for the opening keynote on January 6. The event, scheduled from January 7 to January 10, is seen as a pivotal moment where Nvidia could further elevate expectations for its Blackwell AI chip sales, given the anticipated ramp-up in production.

Citi analyst Atif Malik highlighted that during this keynote, Nvidia will likely discuss not only the increase in Blackwell sales but also delve into the growing demand for AI in enterprise and robotics sectors. This “inference led demand inflection” in areas like warehouses and manufacturing suggests Nvidia’s GPUs are becoming integral to the development of advanced robotics, including humanoid robots by companies like Tesla (TSLA), Figure.AI, and Boston Dynamics. These applications underscore Nvidia’s expanding influence beyond traditional computing into real-world automation solutions.

Moreover, Malik anticipates that Nvidia will signal to investors that profit margins, having possibly hit their lowest point in the April quarter, are expected to improve thereafter. This discussion at CES could further solidify investor confidence in Nvidia’s strategic direction and technological advancements.

The anticipation surrounding Nvidia’s CES presentation isn’t just about new product announcements but also about the broader implications for Nvidia’s role in the AI and robotics revolution. With Citi upgrading its price target to $175 following Nvidia’s strong third-quarter earnings, the market is keenly watching how Nvidia’s leadership will navigate these emerging opportunities, particularly in the realm of AI-driven industrial applications. This event could be a defining moment for Nvidia, setting the tone for its growth trajectory into 2025 and beyond.

Price Action: Nvidia shares closed at $135.99 on Wednesday, marking a modest 0.48% increase. Notably, as of Wednesday’s close, Nvidia’s stock had surged by an impressive 173% year-to-date, significantly outperforming the S&P 500’s (^GSPC) 26% gain over the same period.

Reference: BI

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