Citigroup reveals its top tech pick out of CES

Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., holds a Nvidia Volta 125 Teraflops per second (TFLOPS) Tensor Core as he speaks during an event at the 2018 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Sunday, Jan. 7, 2018.
David Paul Morris | Bloomberg | Getty Images

Nvidia's stock will rally with the return to growth in the chipmaker industry, according to Citigroup.

The firm added Nvidia to its "catalyst watch list" following a bullish CES meeting, sending shares of the stock up more than 1.3% on Friday. Citi has a buy rating and a $245 per share price target on Nvidia, which closed at $244.32 per share on Friday. 

We "expect stock to outperform the group on a relative basis in next three months," said Citigroup research analyst Atif Malik in a note to clients on Friday. "Nvidia is excited about a return to growth as the industry is leaning into the next wave of AI over the next multiple years."

Nvidia hosted an investor lunch at technology conference CES this week, and overall, the company continues to build on new data center and gaming products and partnerships, Malik said. Improvement in data center demand, a closure of the Mellanox acquisition, and a new data center platform announcement slated for March, will all drive the stock upward in the next few months, he added.