Citi: Downgrades NVIDIA's Target Price to $163 as Investor Focus Shifts to Earnings and GTC Conference.

Citi published a report indicating that NVIDIA will disclose its quarterly results for the period ending in January after the market closes on February 26. The firm predicts that its results for January and April will meet market expectations, with sales reaching $38 billion and $42.5 billion respectively, and there may be some changes in the GB200/300 product lines. The firm believes that NVIDIA's stock price is approaching valuation support levels and remains Bullish on its prospects. Fundamentally, NVIDIA has experienced a decline in gross margin due to the impact of its product mix, and its stock price has been fluctuating within a Range since last June. The firm expects the company's gross margin to hit bottom in the quarter ending in April. Furthermore, the firm has lowered its earnings per share forecast for NVIDIA for the fiscal years 2025 and 2026 by about 7%, reducing the Target Price from $175 to $163 while maintaining a 'Buy' rating, stating that investor focus is shifting to earnings and next month's GTC conference.