Nvidia Gets $270 Price Target as It Backs $2B Nscale Funding

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Citigroup set a $270 price target on Nvidia, naming it a core AI-driven semiconductor holding alongside Broadcom and Texas Instruments based on roughly 34% data-center sales support. Nvidia also backed Nscale’s $2 billion Series C at a $14.6 billion valuation, while its TSMC-fabricated chips face energy risks via the Strait of Hormuz.

1. Citigroup’s Semiconductor Picks

Citigroup highlighted Nvidia with a $270 price target, citing AI-driven data-center investment trends that support roughly 34% of semiconductor industry sales. The firm categorized Nvidia alongside Broadcom, Texas Instruments and Monolithic Power Systems as core holdings poised to benefit from ongoing AI infrastructure spending.

2. Nscale Series C Funding

Nvidia participated in Nscale’s $2 billion Series C funding round at a $14.6 billion valuation, joining Aker ASA, Dell and other investors. The capital will fuel Nscale’s expansion of large-scale AI compute infrastructure projects across Europe, North America and Asia.

3. Geopolitical Energy Supply Risk

Although Nvidia designs its leading AI processors, Taiwan Semiconductor Manufacturing Company handles fabrication in power-intensive fabs. Those facilities import about 97–98% of energy via global routes tied to the Strait of Hormuz, exposing Nvidia’s supply chain to potential energy disruptions.

Sources

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