Nvidia stock receives a downgrade from Baird


Nvidia Corporation (NASDAQ: NVDA) continues to slide in the stock market, now down nearly 25% in two weeks. Making it worse is a Baird analyst who warns a recovery is not on the cards at present.

Tristan Gerra cuts his price target on NVDA to $225

Analyst Tristan Gerra downgraded the stock to “neutral” and slashed his price target to $225 on Monday that represents just a 3.0% upside from here. Previously, he had a $360 PT on Nvidia Corporation.

The dovish call is primarily based on weakening consumer and PC demand. In his note, the Baird analyst noted:

While Nvidia sells at MSRP, pricing declines in GPUs post a pricing peak reflect on weakening demand. Orders are now being impacted. Nvidia is not cutting wafer/substrate orders as it’s been supply restricted for 1.5 years and as data centre demand remains very strong.

Only days ago, Nvidia said it wanted to double its number of authorised shares to 8 billion, subject to shareholders’ approval.

Why else is Gerra bearish on Nvidia Corporation?

According to Tristan Gerra, investors are discounting the impact of the ongoing war in Ukraine. Ethereum fork expected by early third quarter, he added, could be another headwind for Nvidia Corporation.

Still, Nvidia in February gave upbeat guidance for its current quarter. It’s Q4 results were significantly ahead of the FactSet consensus. The stock now trades at a PE multiple of 57.

Also on Monday, Wedbush Securities’ Matt Bryson vouched for AMD and TSMC in the semiconductor space.

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