Nvidia (NVDA) Involved in Nearly Every Sovereign AI Deal — Citi Raises Price Target

NVIDIA Corporation (NASDAQ:NVDA) is one of the Top 10 AI Stocks in the Spotlight. On July 7, Citi reiterated the stock as “Buy” and raised its price target on the stock to $190 per share from $180.

The rating affirmation has been partly driven by the uptick in sovereign AI demand. Sovereign AI demand is the nation’s efforts to produce and control their own AI infrastructure and data.

“We believe sovereign demand is already contributing up to billions of dollars in 2025 and expect the mix of sovereign AI sales to step up in 2026. Nvidia has line of sight to 10s of GW over the next couple of years for enterprise and sovereign AI factory buildouts and the company is involved in essentially every sovereign deal (1GW ~ $50B of Nvidia sales).”

– Malik wrote in a Monday note to clients.

The analyst anticipated that by 2028, the total addressable market for Nvidia’s data center, semis, and AI businesses may reach $563 billion, 13% higher than his prior estimate. Expectations on Nvidia’s networking segment were also lifted to $119 billion from $90 billion. Larger AI training clusters and emerging scale-up intra-networking opportunities were noted as reasons behind the lift.

“We raise TP on Nvidia to $190 on AI TAM expansion. We model total 2028 data center semis AI TAM to now reach $563B or 13% above our prior expectation of $500B. The 4% increase in compute TAM is driven by higher-than-expected sovereign AI demand.”

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