A slowdown in graphics processing unit sales could keep gains in check for Nvidia , according to Citi. The bank cut its price target on the artificial intelligence darling to $150 per share from $163. Citi kept its buy rating on the stock, and the new target signals 39% upside. Citi’s lower price target comes as the firm also slashed its overall forecast for GPU sales in 2025 and 2026 by 3% and 5%, respectively, given it expects hyperscalers to slow down spending, which Microsoft has already done. “Our revised outlook is based on our expectations that MSFT’s FY26 capex will likely contract, instead of grow, following multiple reports the company is pulling back on data center projects,” analyst Atif Malik said. NVDA YTD mountain Nvidia stock in 2025. Rising trade tensions can also cap Nvidia gains, Malik said. “We expect NVIDIA margins to be moderately impacted by tariffs,” he said. There’s a “higher risk of pause in enterprise investments amid uncertainty around the global economy due to ongoing trade war.” “That said, the company is likely to benefit from the USMCA exemption,” he added. Nvidia has pulled back nearly 20% in 2025, as part of a larger rout of the technology sector. The S & P 500 tech sector is down more than 17% year to date due in part to pressure from President Donald Trump’s tariffs that have stoked concern over a possible recession. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
