Citi analysts hiked the price target on Buy-rated Nvidia (NASDAQ:NVDA) stock by $100 to $520 per share as he continues to expect outperformance on the back of the generative AI revolution.

If the bull-case scenario is materialized, Citi says Nvidia stock could trade at $600 a share.

The 3 key factors behind today’s chances in Citi’s Nvidia stock model, include: 1) growing GPU demand; b) deeper understanding of competition with both custom ASIC and AMD GPU in the data centers; and c) multiple global cross-department Citi reports on the Generative AI impact last week.

The raised price targets reflect higher FY24/25/26 EPS estimates.

“We continue to see favorable risk-reward on accelerating Y/Y data center sales through the year with China ban, slower macro impact on gaming demand, and competition as key near-to long-term downside risks,” the analysts said in a client note.

The analysts’ comments and actions came despite a 211% year-to-date rally in Nvidia stock price.

Nvidia shares are up 0.5% in pre-open Monday.