Analysts at Citigroup (C) are urging investors not to throw in the towel on Nvidia (NVDA) stock even as its share price plunges 18%.
Atif Malik, a top five-star rated analyst at Citigroup, reiterated a “Buy” rating on NVDA stock, while also maintaining his price target on the shares at $175, which is nearly 50% above where the stock is currently trading. Malik restated his bullish call on Nvidia as the stock suffered its worst day since the Covid-19 pandemic struck in March 2020.
Widely held NVDA stock is leading U.S. markets lower on news of the emergence of Chinese artificial intelligence (AI) app DeepSeek, which was reportedly created in two months at a cost of only $6 million. The cheap cost of DeepSeek has raised concerns about the billions of dollars U.S. technology companies are spending to develop AI models and data centers, including money spent on Nvidia’s microchips.
Nvidia’s Processors
In his note, Malik acknowledged that DeepSeek’s AI achievement “could be groundbreaking.” However, he questioned whether the Chinese AI model could have been built without the use of Nvidia’s most advanced microchips and processors.
Several other analysts and technology leaders are also questioning the claims around the DeepSeek app, including its $6 million price tag. Tesla (TSLA) CEO Elon Musk has been one such skeptic, writing on social media that DeepSeek likely has more Nvidia chips than it is acknowledging publicly. Malik and other analysts say that global demand for Nvidia’s processors is unlikely to evaporate anytime soon.
Even with today’s steep selloff, NVDA stock is still up nearly 90% over the last 12 months.
Is NVDA Stock a Buy?
Nvidia’s stock currently has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 36 Buy and three Hold recommendations assigned in the past three months. The average NVDA price target of $177.56 implies 51.66% upside from current levels.
Read more analyst ratings on NVDA stock
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