NVDA

More and more investment houses and small individual traders are coming to the conclusion that the AI segment in its most liquid part will confidently play the role of a life preserver in the sea of Middle Eastern political and military tensions.

After all, it is AI features, including language models and images’ processing based on collecting consumer data to identify their preferences that are able to currently provide adequate marketing and advertising solutions to maintain the proper level of product sales even if a global or local crisis is looming. Again, in a very optimistic scenario of gradual return to normal growth in developed economies, AI will provide powerful advantages via saving costs and increasing revenue.

Over the weekend, Citygroup offered another bright example and a graphic proof of how it may work when AI trade outweighs Middle East concerns. Citi analysts just noted they remain very “constructive” on equities, with renewed focus on “confidence in the AI trade”. This reputable bank is keeping its encouraging “+1 Overweight” rating for equities, particularly favouring U.S. stocks, as “we see a continued return of the AI trade,” said Dirk Willer, Citi’s global head of Macro and Asset Allocation, when presenting the June report. Citigroup analysts clearly tried to downplay the market side of recent geopolitical developments, saying that the impact of Israeli-Iran conflict, even in case of further oil spikes, is expected to be “relatively short lived.”, so that the bank “would be ready to increase” its equity exposure “further”. The release raised the year-end S&P 500 target to 6,300, with a bull case scenario of 7,000, citing “receding tariff concerns”.

Meanwhile, Barclays banking group chose to raise its mid-term price target on Nvidia shares to $200 from $170, pointing to solid supply chain demand and potential upside options in the second half of 2025. The bank have made its “post-earnings checks” to project another "$2 billion in upside in July for Nvidia vs. Street numbers". Barclays’ new target price for Nvidia means a 40% of extra gain from the current levels.

Nvidia is the undisputed leader of the AI era, and its latest line up of Blackwell chips is showing much faster results, so it is booked for at least a couple of years ahead. Nvidia's Blackwell reportedly trained Meta’s very big and complex Llama 3.1 model in just 27 minutes, and this is how new Blackwell chips are changing the idea of quickness for AI systems. Mass production of Blackwell Ultra is scheduled for the third quarter. This system would contribute 25% of Nvidia’s growing revenue in July and rise to nearly 50% by October, according to Barclays, when “both Ultra and [overall] higher volume should help gross margins”.

As to our Metadoro team, we has long been pointing to targets in the vicinity or above $200 for Nvidia, and we're excited to see more analysts daring to call this number.