Analysts at Citibank are raising their price forecast for Nvidia (NVDA) stock, as the chip giant’s Q3 FY26 earnings loom. This week, top Citi analyst Atif Malik raised his price target for NVDA stock to $220 from $210, while reiterating a Buy rating. The cracks in the Artificial Intelligence (AI) sector rattled the US stock market last week. NVDA closed Monday’s trading session just under $200, up 5% to $199.05.
AI stocks like Nvidia, AMD, Oracle, and Super Micro Computer faced a heavy sell-off in November. The bubble is facing reality as investors are concerned about the heavy investments in the sector. On the other hand, leading global investment bank Goldman Sachs said that the AI sector is not in a bubble yet. “We do not think we’re in a bubble, and we pay very close attention to that,” said Brittany Boals Moeller, region head of Goldman Sachs, to Fortune. The statement assures investors that AI stocks still have mileage and could soar further.
Gen Z and the upcoming generation will be heavily dependent on AI technology. “Will there be some winners and losers from AI? Absolutely,” she said. “There will definitely be some places where valuations are overblown, and time will tell where those spaces are. So it’s smart for clients to be diligent about how they’re investing in AI,” stocks, she summed it up.
Despite the previous bearish week, Citi still suggests that Nvidia (NVDA) is a top stock to buy. Citi’s Malik expects the company to report “beat and raise” results in its next earnings report. The analyst finds Nvidia’s current P/E (price-to-earnings) multiple of 28x much better compared to the valuations of AI rivals Broadcom (AVGO) and Advanced Micro Devices (AMD) at 38x and 37x, respectively.
Furthermore, Malik is also bullish on the upcoming earnings report, expecting Nvidia to report Q3 FY26 revenue of $56.8 billion. This is above the consensus of Wall Street. estimate of about $54.6 billion. Furthermore, he expects the company to issue Q4 revenue guidance of $62.6 billion compared to the Street’s expectation of $61.5 billion.