Traders at Citi are building conviction for a “Magnificent 7” stock that they say is competing in the global artificial intelligence (AI) race.
The bank says that a major bump in the demand for AI infrastructure, especially sovereign governments looking to build national plants, is bullish for Nvidia (NVDA), Yahoo Finance reports.
[adinserter block="1"]Say Citi analysts Atif Malik and Papa Syll,
“We believe sovereign demand is already contributing up to billions of dollars in 2025 [and will rise more in 2026].”
The analysts note that “essentially every sovereign deal” involves Nvidia, putting the company in a central position in the race for AI infrastructure.
“Nvidia has line of sight to tens of gigawatts of sovereign and enterprise AI factory buildouts over the next few years.”
Citi is forecasting a 5% growth in Nvidia’s revenue for fiscal year 2027, and 11% in 2028, and has currently raised its price target for NVDA to $190, a 20% rally from current prices.
In a recent interview with CNBC, Robinhood CEO Vlad Tenev said that despite the tariff war and geopolitical uncertainty, retail investors had been using the trading platform to accumulate most of the classic favorites as before, one of which was NVDA.
“And if we look at retail, retail has pretty much continued to buy the names that they were buying previously. So heavy in the AI space with companies like Nvidia, Tesla, electric vehicles, big in crypto and fintech-related companies.
So it’s very much long innovation. Some companies like Palantir, obviously in the defense space, continue to be retail favorites, but that was always the case, that’s been the case for many, many years. So I would interpret it as retail is sort of moving on ahead investing.”
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