Citi has reaffirmed its Buy rating on NVIDIA Corporation (NASDAQ: NASDAQ:NVDA) with a steady price target of $150.00.
The endorsement comes after Mercury Research published its second-quarter graphics data the previous week. According to the research, NVIDIA saw a mixed performance in its market segments, with its GPU revenue share in gaming increasing by 68 basis points to 94.2%, while its data center GPU revenue share decreased by 110 basis points to 96.1%.
The decline in the data center segment was attributed to sales being more aligned with unit growth rather than price increases, as the H100 GPUs represented a significant portion of the units mix.
NVIDIA's gaming unit share experienced an uptick of 50 basis points, reaching 90.5%, which is above the trailing three-year average of 82%. The increase was more pronounced in desktop and notebook graphics, which rose by 30 basis points and 40 basis points, respectively, due to seasonal trends.
In contrast, NVIDIA's GPU data center units saw a 19% quarter-over-quarter increase to 1.22 million, accounting for 92.8% of the total GPU data center market share. Meanwhile, competitor AMD (NASDAQ:AMD)'s MI300 units witnessed a substantial 58% increase to 94,000 units, capturing a 7% share. Notably, Intel (NASDAQ:INTC), covered by analyst Chris Danely, did not have any shipments in the second quarter.
In other recent news, Nvidia and Broadcom (NASDAQ:AVGO), two significant players in the tech industry, faced notable stock declines. The downturn for Nvidia was part of a broader sell-off in the technology sector, while Broadcom's shares fell following a lukewarm revenue forecast. Analysts from Edward Jones and Morgan Stanley provided their insights into these developments.
Meanwhile, OpenAI, an artificial intelligence research lab, is considering introducing higher-priced subscriptions for its advanced language models. This decision aligns with the organization's ongoing development of project Strawberry, which aims to enhance the performance of AI models. It's worth noting that tech giants Apple (NASDAQ:AAPL) and Nvidia are reportedly exploring investment opportunities with OpenAI.
InvestingPro Insights
NVIDIA Corporation (NASDAQ:NVDA) has maintained a strong presence in the semiconductor industry, and recent data from InvestingPro underscores the company's financial health and market position. With a market capitalization of $2.58 trillion, NVIDIA is a heavyweight in the tech sector. The company's P/E ratio stands at 48.96, indicating a premium that investors are willing to pay for its earnings, which is supported by a high gross profit margin of 75.98% over the last twelve months as of Q2 2025. Additionally, NVIDIA has demonstrated impressive revenue growth of 194.69% during the same period, showcasing its ability to expand its financial base significantly.
InvestingPro Tips highlight that NVIDIA has a perfect Piotroski Score of 9, suggesting that the company's financials are strong across the board. Moreover, analysts are optimistic about NVIDIA's future, with sales growth anticipated in the current year and 30 analysts revising their earnings estimates upwards for the upcoming period. This aligns with Citi's reaffirmed Buy rating and a steady price target of $150.00. For investors looking for more in-depth analysis, there are over 20 additional InvestingPro Tips available, providing a comprehensive view of NVIDIA's financial health and market prospects. To explore these further, one can visit the dedicated page for NVIDIA on InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.