Source: Cai Lianshe Author: Xia Junxiong
Analyst Pierre Ferragu downgraded Nvidia's stock rating from buy to neutral in his report, with a one-year target price of $135. Ferragu is bullish on the stock performance of AMD and Taiwan Semiconductor, with 12-month target prices of $235 and NT$1,200, respectively.
On Friday (July 5), New Street Research analyst Pierre Ferragu lowered his stock rating, becoming the latest analyst to take a wait-and-see attitude towards the stock.$NVIDIA (NVDA.US)$stocks
In the report, Pierre Ferragu downgraded Nvidia's stock rating from buy to neutral and gave a one-year target price of $135.
On Friday, Nvidia fell nearly 2% and closed at $125.83. Thanks to its monopoly position in the artificial intelligence (AI) chip industry, Nvidia rose by 239% last year and has risen more than 154% so far this year, with a market cap of $3.1 trillion.
Ferragu wrote: "Despite remaining the strongest franchise in the AI data center field, recent expectations and valuations argue for more caution on the stock."
In Ferragu's view, the stock price of Nvidia will only have upward space when the outlook improves significantly after 2025, and it is not yet certain whether this situation will occur.
Ferragu pointed out that, according to the general market forecast, Nvidia's revenue from graphics processing units (GPUs) in 2025 will only increase by 35%, far below the average growth rate over the past year.
However, Ferragu affirmed Nvidia's fundamental quality, stating that it remains intact and would only consider buying Nvidia again when the stock price continues to be depressed.
Currently, Wall Street remains overwhelmingly optimistic about Nvidia's stock. Among the 62 analysts tracked by FactSet, only 8 hold a neutral position on Nvidia's stock.
Although he downgraded Nvidia's stock rating, Ferragu is bullish on two other AI benefit stocks, AMD and Taiwan Semiconductor, with target prices of $235 and NT$1200 respectively for the next 12 months, representing increases of 38% and about 19% from their current stock prices.
Ferragu stated in the report that AMD and Taiwan Semiconductor are the most worthwhile stocks to hold in AI benefit stocks, with strong upside potential.
Editor/Lambor