TECH - Nvidia Gets Rare Downgrade Over Concerns That Demand Is Normalizing 'In Line With Expectations:' Stock 'Getting Fully Valued' | Benzinga
Nvidia Corp. (NASDAQ:NVDA) has received a rare downgrade from New Street Research, with the analyst citing concerns about the stock’s overvaluation.
What Happened: New Street Research analyst Pierre Ferragu downgraded Nvidia’s stock from buy to neutral, citing that the stock is "getting fully valued" after a remarkable 161% surge this year to date. The stock had previously seen a gain of almost 240% in 2023.
Ferragu expressed doubt about any additional upside, stating that it would only materialize in a bull case, which is not yet certain. He also warned of a potential risk of derating if the current outlook remains unchanged.
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Despite the AI frenzy, Ferragu notes that there is a normalization when it comes to demand for Nvidia's AI-oriented graphics processing units, or GPUs.
"When you listen to clients of Nvidia, we see demand is completely in line with expectations," said Ferragu in an ...