Citi are feeling more bullish about semiconductors, lifting their price targets for Nvidia (NASDAQ: NVDA) and AMD as the AI race intensifies.
Nvidia saw its price target raised to $190 from $180, with Citi reiterating a Buy rating. The updated outlook comes from analyst Atif Malik, who now expects the 2028 total addressable market for AI data center semiconductors to reach $563 billion.
That’s up from the firm’s previous estimate of $500 billion and reflects stronger-than-expected sovereign investment in AI infrastructure along with growing demand in networking.
“We model total 2028 data center semis AI TAM to now reach $563B,” Malik said in a note to clients, highlighting that sovereign AI investments are already contributing “billions of dollars in 2025” and are likely to accelerate further.
Networking is playing a bigger role in that growth story. Citi revised its networking TAM forecast to $119 billion, up from $90 billion, and now sees it accounting for 21% of the broader AI data center opportunity in 2028. That shift is feeding directly into Nvidia’s own numbers.
Malik raised his networking revenue forecast for Nvidia by 12% for FY27 and by 27% for FY28, estimating that networking will represent around one-fifth of the company’s total data center revenue.
Nvidia’s Blackwell platform rollout also appears to be on track. Citi noted that deployments are moving quickly and said concerns about chip supply may be overstated. Malik pointed to the smooth transition from Hopper to B200 as a model for the company’s next major upgrade to GB300.
AMD stock outlook
Over at Advanced Micro Devices (NASDAQ: AMD), Citi increased its price target to $145 from $120 while maintaining a Neutral rating. That adjustment came as part of the firm’s Q2 semiconductor earnings preview. Analysts now see signs of a sector rebound, driven by stronger-than-expected demand and ongoing inventory restocking—two factors that had been overshadowed by earlier concerns around tariffs.
So, how do you decide which stock makes more sense right now? Nvidia is still the standout when it comes to AI momentum and product execution, while AMD’s raised target suggests room for upside if the industry’s recovery holds steady.
Citi’s note comes just days after Mizuho also raised its price targets for both companies, adding to a growing consensus that chipmakers are set to benefit from the next phase of AI infrastructure buildout.
