On April 11, Citi revised its projections for Nvidia, pointing to slower cloud investments and rising trade tensions between the U.S. and China. Analyst Atif Malik cut Nvidia’s 2025 and 2026 earnings forecasts by 3% and 6%, respectively. He also reduced the company’s GPU unit forecast by 3% for 2025 and 5% for 2026.

Warning: GuruFocus has detected 3 warning signs for Nvidia.

Malik mentioned that Nvidia may raise GPU prices to deal with higher costs, but warned this could “compress margins.” He maintained a Buy rating on the stock, even though the price target was reduced from $160 to $150.

Marvell Also Hit by Weaker Demand and AI Chip Forecast Cuts

Marvell Technology faced a similar outlook revision. Citi reduced its fiscal 2027 revenue and profit forecasts by 5% and 8%, blaming weaker demand from major cloud players. The firm also lowered its AI chip estimates by 20%, noting that Amazon might diversify ASIC suppliers for its upcoming Trainium products. Although the forecasts were cut, Malik still maintained a “Buy” rating on Marvell, reflecting confidence in its long-term potential despite current challenges.