Nvidia Stock Falls as Citi Trims Price Target Ahead of Earnings

What happened

Nvidia shares fell about 3% in Tuesday morning trading after Citi cut its price target to $285 from $315 while keeping a Buy rating. Analyst Atif Malik expects a modest earnings-per-share beat, with higher sales offset by lower gross margins as high-bandwidth memory prices rise.

Confirmed

Global impact / market context

Higher memory costs could reduce how much Nvidia keeps from each sale even if revenue rises, potentially limiting profit growth. Citi’s unchanged Buy rating and expected earnings beat suggest its lower target reflects near-term cost pressure, not necessarily weaker demand.

Analyst inference

Investors are weighing near-term profit pressure against continued expected growth: Malik said Nvidia may repeat its prior outlook for 70% revenue growth in fiscal 2028. Questions about orders, supply, the Rubin platform, and an investigation also remain ahead of results.

Confirmed

What to watch

1. Nvidia is scheduled to report third-quarter fiscal 2027 results on November 17, 2026; compare reported sales and profit per sale with Malik’s expectations. Confirmed
2. Watch whether Nvidia repeats its prior 70% fiscal 2028 year-over-year revenue growth outlook, as Malik expects, and whether results support that trajectory. Proposed
3. Investors may focus on order visibility and backlog conversion, especially among smaller AI-focused cloud providers, because these indicate whether demand translates into future sales. Analyst inference

Evidence

• gurufocus.com