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Citi adjusted its outlook on Nvidia (NASDAQ:NVDA) and Marvell Technology (NASDAQ:MRVL) on Friday, citing rising concerns over tariffs and a cautious capital spending environment among large tech clients.
For Nvidia, analyst Atif Malik reduced projected GPU unit shipments for calendar years 2025 and 2026 by 3% and 5%, respectively. The revision reflects updated expectations for hyperscaler capital expenditures, which now forecast spending growth of 35% in 2025 and 15% in 2026 both lower due to reduced confidence in Microsoft's (NASDAQ:MSFT) spending and broader economic uncertainty linked to the ongoing trade war.
While Nvidia may be able to offset some of the added GPU costs through price increases, the firm expects profit margins to be affected. Malik lowered Nvidia's earnings projections by 3% for 2025 and 6% for 2026 and revised his price target to $150, while retaining a Buy rating.
For Marvell, Citi trimmed fiscal 2027 revenue and earnings forecasts by 5% and 8%, respectively. The cuts stem from lowered expectations for hyperscaler demand and revised assumptions around chip-on-a-wafer-substrate technology.
Malik also cut projected AI ASIC volumes for 2026 by 20%, citing the possibility that Amazon's Trainium line may not rely solely on Marvell as a supplier going forward. Despite these revisions, Citi reiterated a Buy rating on Marvell.
This article first appeared on GuruFocus.