Nvidia is falling again as analysts bail on once-loved stock


Moore downgraded Nvidia to equal weight from overweight and slashed his price target on the stock to $148 per share from $220. The new price target implies a 7.2 percent upside from Monday’s close of $138.01. His old price target implied an upside of 59.4 percent.

Nvidia became the latest tech company to attribute a cut in sales forecast to a slowdown in China. Earlier this month, Apple slashed its revenue guidance for fiscal first quarter, citing a weakening economy in China and weaker-than-expected iPhone sales.

For Nvidia, “China has historically been a large market for graphics,” said Needam analyst Rajvindra Gill in a note Tuesday. “While NVDA does not break out its specific Chinese gaming exposure, desktop gaming is hugely popular in China and a big market for NVDA. Deteriorating conditions in the Chinese economy have adversely affected purchases of graphics cards, particularly high-end RTX GPUs.”

Gill downgraded Nvidia to underperform from buy, adding the stock could fall to $100 “or below.”

Timothy Arcuri, an analyst at UBS, upgraded Nvidia to buy from neutral on the back of its lowered sales forecast, however. In a note to clients on Tuesday, Arcuri said the stock’s move down “finally sets the stage for a new positive revision cycle starting this summer.”

—CNBC’s
Michael Bloom
contributed to this report.

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