The white paper points out that the number of call options on Nvidia is exploding in popularity.

The stock took off Citi’s call, but Citron says the move is not sustainable. When Citi announced their increased target price, it was a 21% upside. The firm increased its target price for the stock to $180, representing an 8.5% upside to the current share price. Meanwhile, Wall Street’s biggest Nvidia bull is Citi Research, who says Nvidia chips could be used in large-scale data centers and that more of those centers are being built to keep up with demand in artificial intelligence and virtual reality. “While we are fans of NVDA emerging business in auto, gaming, and AI …have the prospects of these technology doubled in value in 6 months or is this an example of analysts chasing stock price?,” Citron’s white paper asks. The company is expected to make $6.1 billion in revenue in 2018, compared to $1.9 in revenue expected from other bets. Virtual reality, driverless cars, machine learning and artificial intelligence all run well on GPUs.Ĭitron points out that Nvidia’s core business, gaming, is where the focus should be.

Growth in the company can be explained partially by an increased demand for powerful graphics processing units worldwide.

Comparatively, the S&P 500 is only up 0.38% this week. Nvidia’s shares are moving so fast, they are trending on Google. The GPU manufacturer is up around 5% on Friday and 16.24% this week despite the company not announcing any major news. It predicted a return to $90 a share when Nvidia was trading at $119.

Nvda target price citron