Citi has increased its Nvidia price target to $210, up from $200, pointing to a possible 15.5% gain from Monday’s closing price. The change, announced Tuesday, follows what Citi calls an “incrementally positive” outlook on Nvidia’s upcoming roadmap, especially after the reveal of its Rubin CPX chip. The bank still rates the stock a buy and believes the company’s grip on the AI infrastructure market is only getting tighter as it rolls out new products and commits billions in partnerships. The update comes after Nvidia unveiled Rubin CPX, a next-gen graphics processing unit that’s designed to power fast, real-time video generation with generative AI. The chip is expected to launch at the end of 2026. It’s part of the company’s strategy to stay ahead of rival chipmakers and stay embedded in the workloads that dominate artificial intelligence. Nvidia commits $100B to OpenAI and leans into AI data centers As part of that strategy, Nvidia said it plans to pour $100 billion into OpenAI, aiming to build large-scale data centers to handle the computing needs of generative AI models. Citi analyst Atif Malik noted the move didn’t alter Nvidia’s internal plans, writing, “Nvidia’s roadmap is not impacted by this partnership and no change in commitment towards ARM. Nvidia is giving customers more options with x86.” Atif also said the investment has no negative effect on their projections. Instead, Citi raised its 2026 and 2027 sales forecasts by 1% and 10%, aligning them with its revised AI infrastructure spending outlook. He added that they now expect $54 billion in sales for the October quarter and $62 billion for January. The data center push is seen as a boost to Nvidia’s ecosystem and a signal to the market that the company is still the backbone of AI development. Atif pointed to GTC Washington, an AI conference set for late October, as another event that could drive momentum. Jensen Huang, Nvidia’s CEO, will deliver the keynote. GTC has historically impacted the company’s stock price, and this year’s event comes at a moment when the Rubin chip and the OpenAI funding are both fresh on investors’ minds. Even with Citi’s revised $210 target, the number still falls short of the Street average of $213.34, based on LSEG data. Still, the stock has gained 7% in the past month and is up 35% year-to-date, showing the market is already betting on growth, but maybe not done yet. Cerebras raises $1B in market challenge move At the same time, Cerebras Systems, a chip company based in Silicon Valley, announced it’s raised more than $1 billion in a new round led by Fidelity and 1789 Capital, a firm connected to President Donald Trump Jr. The raise pushes Cerebras’ valuation to $8.1 billion, and the company is now preparing to go public. Andrew Feldman, the company’s CEO, says they’re not trying to play catch-up. “We built the largest chip in the history of the computer industry. Our chip is the size of a dinner plate, most chips are the size of postage stamps,” he said. “That allows us to achieve a performance you can’t achieve by lashing together smaller chips.” He also claimed Cerebras’ hardware can handle coding and natural language tasks faster than Nvidia’s GPUs — the same GPUs that power everything from ChatGPT to Anthropic’s systems. Despite the challenge, Nvidia still owns the market. Its GPUs remain the gold standard for training AI models, and its Cuda software continues to be the default for developers across Big Tech and startups. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.
