Citi expects Nvidia to post stronger-than-anticipated quarterly sales next week, driven by improved shipments of AI networking gear and a continued ramp of its Blackwell chips. The brokerage kept its Buy rating and $300 price target while trimming its valuation multiple to reflect lower market-wide multiples.
Citi expects Nvidia to report stronger-than-anticipated quarterly sales next week, raising its revenue forecasts on improved shipments of AI networking components and a continued ramp-up of the company's Blackwell chips.
Citi lifts revenue estimates ahead of earnings
The brokerage expects Nvidia to post July-quarter revenue of about $93 billion, roughly $1 billion above the Wall Street estimate, helped by a strong ramp of its B300 systems. It forecasts October-quarter revenue of $105 billion, about $1.5 billion above consensus and a 13% sequential increase.
Buy rating stays, valuation multiple comes down
Citi maintained its Buy rating and $300 price target, while lowering its valuation multiple assumption to 24 times projected calendar 2027 earnings from 28 times to reflect lower broader market multiples. It also expects data-center revenue to rise 15% sequentially in the July quarter and 14% in October, compared with Street expectations of 13% growth in both periods. Faster-than-expected shipments of 1.6-terabit transceivers, Citi said, also point to an initial ramp of Nvidia's next-generation Vera Rubin platform.
Memory supply and chip shipment estimates
Citi said it believes Nvidia has secured sufficient high-bandwidth memory supply for 2026 and 2027, potentially allowing analyst estimates to move higher. As a result, it raised its fiscal 2027, 2028 and 2029 adjusted earnings-per-share estimates by 1%, 2% and 2%, respectively.
The brokerage also expects Blackwell GPU shipments in fiscal 2027 to reach 7.7 million units, driven largely by the B300 ramp, while lowering its Rubin estimate to 2 million units from 2.2 million because of tighter memory availability. It also raised its fiscal 2028 total GPU unit estimate by 7%, reflecting a shift toward more servers with lower memory per chip.
Nvidia's growing role in financing AI infrastructure
Citi also highlighted Nvidia's growing role in financing AI infrastructure, pointing to its support for the Ohio PORTS-Pike campus, which involves land, power and shell construction for an initial 4.25 gigawatts of IT capacity. Citi said the arrangement could help AI labs and cloud providers ease near- to medium-term financing constraints as they expand computing capacity.
Source: Investing.com
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