Citi expects Nvidia's margins to bottom out early next year before its Blackwell GPU architecture fully ramps up.
Citi is expecting Nvidia 's margins to bottom out early next year as its Blackwell platform will take time to fully ramp up. Analyst Atif Malik maintained his buy rating on the artificial intelligence darling. He also kept his $150 price target, which suggests shares can jump 17.4%. This year, Nvidia has soared nearly 158%.
" Malik expects Nvidia's gross margins to be in the low 70s range, or roughly 72%, in the first quarter of next year, with long-term gross margins stabilizing in at a mid-70s percentage with the Blackwell graphics processing unit, or GPU. Nvidia is expected to ramp up Blackwell production in the fourth quarter of this year, with production continuing into fiscal 2026. But long-term, Nvidia has a strong investment case, according to the analyst.
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