Nvidia stock slips as analyst cuts rating after outperformance

Source Investing

New Street Research analysts have downgraded Nvidia (NASDAQ:NVDA) stock to Neutral from Buy, according to a note released on Friday.

The AI chipmaker’s shares fell less than 1% ahead of the market open.

The independent research firm noted that consensus expectations imply GPU revenues will increase by 35% in 2025, which aligns with their previous forecast, adding that they “see limited further upside based on what we hear from the value chain.”

“We downgrade the stock to Neutral today, as upside will only materialize in a bull case, in which the outlook beyond 2025 increases materially, and we do not have the conviction on this scenario playing out yet,” analysts wrote.

New Street Research said that consensus currently projects revenue growth to slow to mid-teens, a rate that could be at risk given the potential slowdown in hyperscale capital expenditures and increasing competition from ASICs and AMD (NASDAQ:AMD).

If the outlook remains unchanged, analysts said they do not foresee further upside in the stock. Instead, they warn of a potential risk of derating, as the stock currently trades at 40x next twelve months earnings per share (NTM EPS), compared to a trough of 20x when growth slowed to 10% in 2019, before recovering to 35x.

The firm values Nvidia at 35x earnings, in line with the late 2019 and early 2020 multiple. With an estimated EPS of $4.1 in 2027, this translates into a target price of $143 in 2026, indicating limited upside over the next two years.

New Street set its one-year target price for NVDA at $135, implying around 5% upside from current levels.

“The quality of the franchise is nevertheless intact, and we would be buyers again, but only on prolonged weakness,” analysts concluded.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
XRP Price Prediction: Fibonacci And Elliott Wave Analysis Suggests $15 By May 2025Egrag Crypto, a well-known crypto analyst on the social media platform X, recently shared an optimistic price prediction for XRP. According to the analyst, technical analysis of the XRP price on the
Author  NewsBTC
Dec 30, 2024
Egrag Crypto, a well-known crypto analyst on the social media platform X, recently shared an optimistic price prediction for XRP. According to the analyst, technical analysis of the XRP price on the
placeholder
Ripple (XRP) Price Sees a Surge, Solana Targets $600 in 2025 as Investors Increase Focus on New AltcoinThe cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
Author  Cryptopolitan
Jan 15, Wed
The cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Gold Price Forecast: XAU/USD attracts some sellers below $3,250 on firmer US DollarThe Gold price (XAU/USD) extends the decline to around $3,245 during the early Asian session on Thursday. The precious metal edges lower to near a two-week low amid easing US-China trade tensions and stronger US Dollar (USD) demand. 
Author  FXStreet
May 01, Thu
The Gold price (XAU/USD) extends the decline to around $3,245 during the early Asian session on Thursday. The precious metal edges lower to near a two-week low amid easing US-China trade tensions and stronger US Dollar (USD) demand. 
placeholder
Gold Price Forecast: XAU/USD edges higher to near $3,250 as trade questions lingerThe Gold price (XAU/USD) trades in positive territory near $3,245 during the early Asian session on Monday. The renewed concerns over the US recession and US-China trade relations provide some support to safe-haven assets like Gold.
Author  FXStreet
Yesterday 01: 29
The Gold price (XAU/USD) trades in positive territory near $3,245 during the early Asian session on Monday. The renewed concerns over the US recession and US-China trade relations provide some support to safe-haven assets like Gold.
goTop
quote