Citi told investors to add to positions in Nvidia ahead of what it expects to be a period of outperformance in the second half of 2026, citing strong product momentum and improving demand visibility extending into 2027.

In a preview note, Citi analyst Atif Malik said they expect the company to report January-quarter revenue of $67 billion, “above Street $65.6B,” and guide to April-quarter sales of $73 billion versus consensus at $71.6 billion. 

The analyst expects a continued ramp of the B300 and the Rubin platform to drive “a 34% H/H acceleration in CY2H26 sales vs 27% in CY1H26.”

Malik added that “most investors are looking past the earnings,” to the company’s annual GTC conference in mid-March, where Nvidia is expected to outline its inference roadmap using Groq’s low-latency SRAM IP and give an “early outlook for 2026/27 AI sales.” 

The analyst also anticipates a fiscal 2027 gross-margin outlook of roughly 75% and assumes operating-expense growth in the high-30% range, similar to fiscal 2026.

Despite concerns about rising hyperscaler capital spending, Citi argued that these investments “will deliver long-term returns” as AI-driven infrastructure demand accelerates cloud-revenue growth. 

The bank also stated that increased competition in inference is natural, but that Nvidia should “continue to be the leader across both training and reasoning focused inference workloads.”

Citi maintained its Buy rating and $270 target price on Nvidia, concluding that the stock “looks attractive with the stock likely to outperform in 2H26 as demand visibility extends into 2027.”