Read the story here. Advertise at Before It's News here.
Profile image
By Freedom Bunker
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

“Getting Fully Valued”: Nvidia Receives Rare Downgrade 

% of readers think this story is Fact. Add your two cents.

“Getting Fully Valued”: Nvidia Receives Rare Downgrade 

Nvidia’s price surge over the past 18 months mirrors the exuberance of the ‘Roaring Twenties,’ particularly the bull market of the late 1920s, and is reminiscent of Radio Corporation of America’s meteoric rise following the emergence of the radio industry. 

According to a recent note from Bryan Taylor, the chief economist at Global Financial Data, RCA shares soared 200-fold in the 1920s. By the late 1929s, RCA shares peaked then crashed 98% through early 1932.

These days, the resilient economy (however, the labor market is slowing) and the AI-fueled bubble (it only took 23 days for Nvidia to add a trillion dollars in market cap) have Goldman’s chief equity strategist David Kostin telling clients that quarter two earnings season will be a massively high bar to beat—and this could be a day of reckoning for investors. 

New Street Research analyst Pierre Ferragu apparently has gotten the memo that the AI party isn’t some linear fashion, and last Friday, he downgraded Nvidia from a “buy” to “neutral.” 

Ferragu told clients in an industry report that he was conducting a “health check” on AI stocks, indicating that shares of the AI chip leader are “getting fully valued for the base case” after soaring 154% this year, on top of 240% gains in 2023. 

Many analysts have questioned whether Nvidia’s $3 trillion market cap can be maintained.

Further 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,” Ferragu said. 

While the “quality of the franchise is nevertheless intact,” there is, “if anything, a risk of derating” should the outlook remain unchanged, he added.

Ferragu noted, ”Although Nvidia remains the strongest franchise for AI data centers, near-term expectations and valuation justify a more prudent view on the stock.” 

He reiterated continued bullishness for Taiwan Semiconductor Manufacturing and Advanced Micro Devices, indicating both stocks have “upside in both in our base and high scenarios.” 

New Street set a one-year price target of $135 for Nvidia, compared with Friday’s $125.83 close. 

Data from Bloomberg shows that seven of the 72 analysts tracked have a neutral rating on Nvidia or about 9.7%. There are currently 64 buys and one sell

Ferragu said, ”This doesn’t mean the end of the trend – we still see very strong growth ahead and upside potential in most names we cover,” adding, ”It nevertheless means investors must now be more careful and selective in their exposure to the trend.”

Tyler Durden Sun, 07/07/2024 – 13:25

Read More…


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Lion’s Mane Mushroom Nootropic

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.

Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.

Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.

Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.

Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.

Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.