Why Analysts Are Bearish on NVIDIA’s Short-Term Outlook
Wall Street analysts are bullish on NVIDIA’s (NVDA) long-term growth potential and have therefore given the stock “buy” recommendations. According to a Barron’s article dated October 25, Bank of America Merrill Lynch analyst Vivek Arya lowered his price target for NVIDIA from $360 to $300 after its GPU (graphics processing unit) rival Advanced Micro Devices (AMD) reported weak earnings and guidance due to a fall in crypto-related GPU sales and high retail channel inventory. AMD’s weak earnings suggest that NVIDIA’s gaming business will likely also report weak earnings in the second half of its fiscal 2019.