Nvidia Rated Buy by Citi Ahead of Expected 2H26 Outperformance

Nvidia Rated Buy by Citi Ahead of Expected 2H26 Outperformance

Faizan Farooque

Thu, February 19, 2026 at 6:57 AM GMT+9 1 min read

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This article first appeared on GuruFocus.

Nvidia Corporation (NVDA, Financials) was upgraded by analysts at Citigroup Inc., who urged investors to add to positions ahead of what they expect to be outperformance in the second half of 2026.

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Atif Malik, an analyst at Citi, predicted that sales for the January quarter would be $67 billion, which is higher than the Street’s estimate of $65.6 billion. The bank also predicted that sales in the first quarter of April would be $73 billion, which is more than the $71.6 billion that everyone else thought.

The prognosis shows that Nvidia’s B300 and Rubin platforms will keep growing. Compared to 27% growth in the first half of 2026, Citi forecasts a 34% increase in calendar second-half 2026 sales.

Investors are also looking forward to Nvidia’s annual GTC conference in mid-March, where the firm is anticipated to share its plans for inference and give an early look at AI-related revenue for 2026 and 2027.

Citi thinks that gross margins for fiscal 2027 will be around 75% and that operating expenses would climb by roughly 30%, which is in line with patterns from fiscal 2026.

The bank added that worries about hyperscaler capital spending are overblown and that investments in AI infrastructure could help cloud revenue rise over the long run. It kept its Buy rating and $270 price target, saying that demand insight beyond 2027 supports more growth.

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