Nvidia (NVDA – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Frank Lee CFA from HSBC downgraded the rating on the stock to a Hold and gave it a $120.00 price target.
Frank Lee CFA has given his Hold rating due to a combination of factors impacting Nvidia’s future growth prospects. Despite Nvidia’s expected year-over-year sales and earnings growth, the company’s share price has seen a decline, and the current price-to-earnings ratio does not appear demanding. However, the potential for significant earnings upside is limited due to emerging re-rating headwinds and the lack of significant pricing power in Nvidia’s GPU segment.
Furthermore, uncertainties surrounding the potential peak in cloud service provider capital expenditures and inconsistencies in Nvidia’s supply chain contribute to the cautious outlook. While future opportunities in robotics and autonomous AI markets could drive growth, these are not yet reflected in current revenue streams. Consequently, Frank Lee CFA has downgraded the stock to a Hold rating, with a revised target price reflecting lower earnings estimates and target price-to-earnings ratio.
In another report released on March 20, D.A. Davidson also maintained a Hold rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 125 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.