Analysts downgrade NVIDIA Corp due to softer inflation data, but some still see strong growth

From Yahoo Finance: 2024-07-22 05:17:45

The recent softer-than-expected inflation data caused investors to take profits from tech stocks and invest in small-cap companies. Some believe the decline in tech stocks signals the end of the AI-fueled rally, while others think it’s a short-term trend. Wall Street analysts like Samantha McLemore believe there is more room for growth.

NVIDIA Corp (NASDAQ:NVDA) ranks 4th on a list of AI and Tech Stock Analyst Upgrades and Downgrades. New Street Research recently downgraded the stock to Neutral with a price target of $135. Despite skepticism from analysts like Aswath Damodoran, other experts like Oppenheimer’s Rick Schafer are optimistic about NVDA’s growth potential.

Barclays’ Tom O’Malley predicts a $25 billion opportunity for NVDA as countries develop their AI capabilities. NVDA’s recent product announcements and plans showcased at the Computex 2024 reveal the company’s strong growth potential. Analysts are impressed by NVDA’s new AI architecture and chips that outperform competitors.

Alger Focus Equity Fund highlighted NVIDIA Corporation (NASDAQ:NVDA) as a leading supplier of GPUs for various markets. The company’s computational power is essential for AI adoption, making it well-positioned to benefit from growing AI data center workloads. NVDA’s Q1 2024 performance exceeded expectations, with strong demand from data centers.



Read more at Yahoo Finance: Analyst Loses ‘Conviction’ On NVIDIA Corp (NASDAQ:NVDA) Bull Case, Downgrades the Stock