Nvidia Corp (NASDAQ:NVDA, ETR:NVD) has seen its earnings outlook slightly lowered by Citi, which reduced its estimates for 2025 and 2026 on the back of reduced hyperscaler spending and growing macroeconomic uncertainty.
Citi cut its GPU shipment estimates by 3% for 2025 and 5% for 2026, driven largely by a more cautious outlook on Microsoft’s capital spending and a potential pause in enterprise investments amid trade war pressures.
Despite this, Nvidia’s sales projections for the same period were only reduced by 3%, with the company expected to offset some volume softness with resilient pricing.
Earnings per share (EPS) estimates were trimmed by 3% for 2025 and 6% for 2026. As a result, the analysts lowered their price target for Nvidia to $150, based on a 30x multiple of discounted 2026 EPS.
Shares of Nvidia traded up 1.1% at $109 late morning on Friday.
Citi maintained a ‘Buy’ rating on the company, citing Nvidia’s strong competitive position and pricing power in AI chips.