Citi released a report trimming its GPU sales forecasts for Nvidia (NVDA.US) by 3% for FY2025 and 5% for FY2026, aligning with a 5-ppt reduction in its capex growth estimates for the four major U.S. cloud service providers to 35% and 15% over the same period.

This primarily reflected concerns over Microsoft (MSFT.US)'s capex cut and higher risk of suspension in enterprise investments amid uncertainty around the global economy in wake of ongoing trade war.

Citi also expected Nvidia’s GPU sales to sag 3% during this period, based on assumptions of the company’s technological leadership and inelastic pricing for AI chips, which could partially offset cost increases from the trade war.

The broker lowered its EPS forecasts for Nvidia by 3% for FY2025 and 6% for FY2026, reducing the target price from USD163 to USD150, based on a 30x FY2026 P/E, while maintaining a Buy rating.
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AAStocks Financial News
Web Site: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
Nvidia (C)	10573	150 (-)	0.084	5.1 X
Nvidia (C)	10615	135 (-)	0.162	4.0 X
Nvidia (P)	10538	116 (-)	0.295	2.9 X
Nvidia (P)	10581	95 (-)	0.191	2.7 X
MSFT (C)	10557	515 (-)	0.051	11.0 X
MSFT (P)	10511	390 (-)	0.520	5.8 X