According to Citi, Nvidia stock is more likely to rise — even after hitting an all-time high this year. Analyst Atif Malik increased his price target by $100 to $520 while maintaining his buy rating. Malik’s target implies a gain of 14.4% next year. That means Malik sees more momentum in Nvidia’s rally. Shares have soared more than 200% to an all-time high since the start of the year as investors grow more excited about the potential of artificial intelligence. NVDA Mountain YTD A strong year for Nvidia Malik’s bullish case implies that the rally could go further to $600 a share, or 32% more than Friday’s closing price. That share price will be more than four times higher when the stock closes in 2022. But neither his price target nor his bullish case should be considered exotic for the stock. While both are well above the average analyst price target of $479.22, they’re not above the highest price target on Wall Street of $767 per share, according to Refinitiv. Nvidia is seen as the clear winner in AI, he said, with more than 90% share in the AI accelerator market expected to be valued at around $150 billion by 2027. And Maik said Nvidia should have it. “significant advantage” of spatial AI on future Advanced Micro Devices. When it comes to software, Malik says competitors will need generations to match what Nvidia has developed. It also continues to lead in terms of graphics processing units at the accelerator and system level, he added. In addition to its bullish objective, Malik also raised its earnings per share outlook for the coming years. He now expects EPS to be 6% higher than previously forecast in fiscal year 2024. In 2025 and 2026, EPS will be 38% and 30% higher, respectively. Despite the bullish outlook, he noted that the stock’s performance could be affected by increased competition in the game, slower-than-expected adoption of new technology, data center difficulties. or the auto market or cryptocurrency mining if it affects game sales. “We continue to see favorable risk-reward for accelerating Y/Y data center sales throughout the year with China ban, slower macro impact on demand,” Malik said. gaming and competition are the main downside risks in the short and long term.” — Michael Bloom of CNBC contributed to this report.