Analyst reduces NVIDIA shares prices for a growing threat

NVIDIA stock (NVDA) Since the company on August 27th. Announced a quarter revenue, lost more than 7%, although the shares have increased by 25%to date.

The manufacturer of artificial intelligence chips was a huge recipient of the generative AI boom after the Chatgpt’s performance. Her shares in 2024. Increased by 171%, making it one of the best performers of the year.

During the first half of the year, NVIDIA has faced many challenges, including tariff tension, in the US, tightening of advanced chips export restrictions and wider market uncertainty about technology assessments.

Some of these pressures have been easier. August NVIDIA has entered into an agreement with the US government to renew sales in China for a 15% sales tax. The compromise allowed Nvidia to unlock the main source of demand.

However, now a new threat has emerged, and one analyst has reduced its goal.

Jensen Huango October 28 GTC Keynote may be the main NVIDIA stock catalyst. Image Source & Colon; Morris & Sol; Bloomberg via Getty Images

NVIDIA remains a leading AI race player, as her income is still growing rapidly, and CEO Jensen Huang highlights the high demand for Blackwell several times, NVIDIA Main Graphics Processing (GPU) architecture, which Tech Hypercalers releases billions.

“Blackwell Ultra production is increasing at full speed, and demand is extraordinary,” Huang said in a press release on August 27. “Ai races are taking place and Blackwell is a platform at its center.”

Related: Analys Turns Leaders with Nvidia’s rival shares after earnings after earnings

However, the revenue of the Q2 Data Center missed the second straight quarter ratings that dragged the latest stock results.

NVIDIA Q2 earnings $ 1.05 per share and Wall Street estimates were $ 1.01. Income increased by 56% to $ 46.74 billion, higher than analysts’ forecast for $ 46.06 billion.

Citi analyst ATIf Malik has reduced his goal of NVIDIA to $ 210 from $ 210, keeping a purchase rating, according to Monday’s certificate.

Malik said (Avgo) who recently reported strong quarterly results and revealed a $ 10 billion order for his XPUS-BENDROVE new generation of custom accepts.

Related: Nvidia analyst veteran rejects Blunt 4 words message about your future

“Although the GPU will continue to dominate the AI ​​calculation market with 85%+ sales, we believe the XPU market accelerates by 2026 a year,” Malik wrote. It designs the XPU segment, increasing by 53% by 2026, reviewing the 34% growth, which is expected by AI GPU, which is mainly driven by Google, Meta and Amazon.

Citi has now estimated about $ 12 billion less GPU sales in 2026 than previously modeled, including $ 2 billion from meta. This means that approximately 5% achieved a previous $ 232 billion forecast for 2026. For merchants for GPU sales.

  • Competition in the field of games can press shares if NVIDIA loses its market share.

  • The slower application of new platforms can evaluate the sales of the data center and games.

  • The volatility of car and data centers in the car and data centers could increase stock fluctuations.

  • Cryptoming can affect the sale of games.

“It is important that our estimates are not included in China, which could be upside down if NVIDIA re -launches GPU parcels for China,” Malik added.

NVIDIA closed for $ 168.31 on September 8th. Citi expects Huango on October 28th. GTC’s main message will be the main stock catalyst.

Related: Goldman Sachs updates the S&P 500 goal in 2026.

Initially, the story reported by Thestret in 2025. September 10, where she first appeared in the Investing News, Analysis and Advice Unit. Add TheStret as the desired source by clicking here.

Leave a Comment