Nvidia Enjoyed AI Hype, But Now It's Approaching 'Trough Of Disillusion': Analyst
Portfolio Pulse from Priya Nigam
DA Davidson analyst Gil Luria initiated coverage of Nvidia Corp (NASDAQ:NVDA) with a Neutral rating and a price target of $410. Despite Nvidia's leadership in accelerated computing and potential for impressive growth, Luria suggests that the AI hype surrounding the company is nearing a 'trough of disillusion.' He predicts a significant drop-off in investments beyond 2024, leading to lower-than-consensus estimates for CY25. Nvidia's stock slipped 0.9% to $477.42 in early trading on Wednesday.
January 03, 2024 | 5:28 pm
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Nvidia Corp received a Neutral rating from DA Davidson with a price target of $410, suggesting a cautious outlook on the company's future growth in AI investments beyond 2024. The stock experienced a slight decline following the coverage initiation.
The initiation of coverage with a Neutral rating and the setting of a price target below the current trading price suggest a cautious or bearish outlook by the analyst. This could lead to a negative perception among investors, potentially impacting the stock price in the short term. The mention of the 'trough of disillusion' indicates skepticism about the sustainability of Nvidia's AI-driven growth, which could further dampen investor sentiment.
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