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Nvidia shares fell nearly 2% in morning trading

Tiger Newspress2021-11-12

Nvidia shares fell nearly 2% in morning trading.Wedbush analyst Matt Bryson downgraded NVIDIA Corp to Neutral from Outperform with a price target of $300, up from $220.

The analyst cites valuation for the downgrade, with the shares trading at 55 times his 2024 numbers.

He would have to lift the multiple to 67x to justify Outperform, suggesting Nvidia valued at ~7X its stated 2024 TAM and ~25X sales. Conversely, he would have to double his sales growth assumptions (from ~20% to ~40%) over the next couple of years to continue to use a 40X multiple to value Nvidia.

However, Bryson believes the combination of "unprecedented demand" for both data center and client offerings will allow Nvidia to exceed expectations again next week when its reports.

Nvidia's continued work in building out its AI software will further solidify its AI leadership.

Client GPUs have again become difficult to source, helped by a combination of solid gaming demand and crypto mining requirements.

New opportunities, particularly the Metaverse and its graphics-intensive requirements, have started to realize the increased investment.

He sees no "negative catalyst" for the stock and improving fundamentals for Nvidia but downgrades the shares on valuation.

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  • LplMichelle
    ·2021-11-15
    Great
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  • eugenepay
    ·2021-11-15
    What price is a good time to enter? 
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  • fysx49
    ·2021-11-15
    Is good stock to invest for long term
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  • Erick27
    ·2021-11-14
    Overvalued
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    收起
    • JPHC

      I agree but still FOMO exists

      2021-11-15
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    • 74rk
      Yep
      2021-11-15
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  • Maxsoh49
    ·2021-11-14
    Prepare to buy a little
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  • RS142
    ·2021-11-14
    Buy the dip
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    收起
    • Ljoney
      Nice
      2021-11-15
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    • Maxsoh49
      Same for me but i would watch a few days first
      2021-11-14
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  • claratan
    ·2021-11-14
    Wow 👏 
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  • LionKingAir
    ·2021-11-14
    Yes
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  • 来人
    ·2021-11-13
    Nice. 
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  • Bryonie
    ·2021-11-13
    Grab it now
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    收起
    • IAS
      [Strong]
      2021-11-13
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  • VivianChua
    ·2021-11-13
    Buy now and follow the up together
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  • Glenhil
    ·2021-11-13
    What is the good price to buy?
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  • CHECK1894
    ·2021-11-13
    Opportunities
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  • Jasminephyo
    ·2021-11-13
    Ok
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  • b1uesky
    ·2021-11-13
    Like
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    收起
    • T2huat
      like pls
      2021-11-15
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    • Blackbunny
      done
      2021-11-13
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  • AnthonyC
    ·2021-11-13
    Like
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    • PickleT68
      👍🏻
      2021-11-14
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  • JCai
    ·2021-11-13
    Noo
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    • JCai
      kk
      2021-11-13
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  • JeremyKok
    ·2021-11-13
    Buy the dip and hold. Once the supply for chip return back to normal can start to sell?
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    • AnthonyC
      Agreed
      2021-11-13
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  • andrew123
    ·2021-11-13
    Like n comment
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    • andrew123
      tks
      2021-11-13
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    • kenong62
      ok done
      2021-11-13
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  • SunHao
    ·2021-11-13
    Hold tight. Its a minor correction 
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    • Robinshk
      Hi
      2021-11-13
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