Your request has been identified as part of a network of automated tools outside of the acceptable policy and will be managed until action is taken to declare your traffic. To allow for equitable access to all users, SEC reserves the right to limit requests originating from undeclared automated tools. The stock has lost 25% this year.Your Request Originates from an Undeclared Automated Tool Nvidia stock gained 3.3% to $222.03 on Wednesday. Baird analyst Tristan Gerra downgraded the stock to Neutral from Outperform on Monday, citing concerns over slowing consumer demand and falling prices for graphic cards. Most analysts echo Ferragu’s take on the stock, with 82% of analysts polled by FactSet rating it a Buy, though some analysts have taken a more cautious approach. “A weakness driven by crypto would be limited, short-lived, and only an opportunity to add to positions.” The upshot: “We no longer see crypto as a reason not to own the stock,” Ferragu said. And that’s before seeing any upside from the company’s datacenter momentum, which “benefits from excellent demand driver and a product cycle,” he added.

Since November 2021, the relative multiple has already contracted by 25%, the analyst estimated. It’s a legitimate fear given that Ethereum mining alone likely boosted Nvidia’s gaming revenue by about $2 billion in 2021, Ferragu calculated.įerragu doesn’t foresee such a drastic impact this time around in part because the market may already be pricing in a crypto correction. ) graphic chips could hurt the company’s revenue.

It was something that Ferragu, in 2021, warned investors could happen again as a slowdown in cryptocurrency activity and oversupply of Nvidia (ticker:

That was an issue in 2018, whenĪnd other cryptos crashed and Nvidia’s relative multiple contracted by about 30%, Ferragu noted, while sales took a hit for four straight quarters. One of the big concerns for investors is the impact of cryptomining on Nvidia’s revenue. “The secular outlook for gaming, visualization, and datacenter is still very strong, and on the datacenter front, near-term visibility is very strong as well, with supply constraints being the limiting factor,” he wrote in a research note.

Nvda target price 2018