After surging all the way, Nvidia, known as the top stock in the space industry, is now facing Wall Street's worries. Last year, Nvidia's cumulative increase was 239%; and from the beginning of the year to now, Nvidia has soared by more than 154%, surpassing Microsoft and Apple to become the global number one. Although it experienced a small setback in late June, its market capitalization is still as high as 3.1 trillion dollars, second only to Microsoft and Apple. Currently, due to concerns about Nvidia's valuation, Wall Street has unusually lowered Nvidia's stock rating. On Friday, Nvidia closed down 1.9% at 125.83 dollars. On Friday, Pierre Ferragu, an analyst at NewStreet Research, lowered the stock rating of this AI giant from "buy" to "neutral". He believes that since the beginning of last year, Nvidia's amazing rebound has exhausted the space for further growth. After rising nearly 240% in 2023 and soaring 154% this year, its valuation has been fully reflected. "Only in a bullish market background, that is, after 2025, the prospects for Nvidia will significantly improve, and it is not certain whether this situation will occur now." He pointed out that although Nvidia is still the strongest charter company in the AI data center field, recent expectations and valuations prove that a more cautious view of the stock is necessary.The voice of Wall Street's concerns has been heard one after another as Nvidia, known as the top stock in the space industry, surged all the way.

Last year, Nvidia's cumulative increase was 239%; and from the beginning of the year to now, Nvidia has soared by more than 154%, surpassing Microsoft and Apple to become the global number one.

Although it experienced a small setback in late June, its market capitalization is still as high as 3.1 trillion dollars, second only to Microsoft and Apple.

Currently,due to concerns about Nvidia's valuation,Wall Street has unusually lowered Nvidia's stock rating. On Friday, Nvidia closed down 1.9% at 125.83 dollars.

On Friday, Pierre Ferragu, an analyst at NewStreet Research, lowered the stock rating of this AI giantfrom "buy" to "neutral"..

He believes that since the beginning of last year, Nvidia's amazing rebound has exhausted the space for further growth. After rising nearly 240% in 2023 and soaring 154% this year, its valuation has been fully reflected. "Only in a bullish market background, that is, after 2025, the prospects for Nvidia will significantly improve, and it is not certain whether this situation will occur now."

He pointed out that although Nvidia is still the strongest charter company in the AI data center field, recent expectations and valuations prove that a more cautious view of the stock is necessary.

Nvidia is the second best performing company among the S&P 500 components this year, second only to another hot company beloved by AI investors, Super Micro Computer.For a company that has become the biggest beneficiary of the AI boom, the analyst's downgrade is rare.

Bloomberg data shows that Wall Street analysts rarely express pessimistic views on Nvidia. Among 72 analysts, 89% recommend buying Nvidia.

Optimists expect Nvidia's rapid growth to continue, even predicting that Nvidia's valuation will nearly double by the end of this year, reaching 6 trillion dollars.

Major investment banks such as Goldman Sachs, Bank of America and Jefferies have all expressed their "favor" for Nvidia.

It is worth mentioning that Pelosi, known as the "Congress Hill stock god" in the United States, has increased its holding of Nvidia. Among them, 10,000 shares of Nvidia were purchased, with a purchase size of 1 million to 5 million dollars.

However, Ferragu did not completely overlook Nvidia.

It is worth mentioning that Pelosi, known as the "Stock God on Capitol Hill" in the United States, increased his position in NVIDIA. Among them, 10,000 shares of NVIDIA were purchased, with a purchase scale of $1 million to $5 million.

However, Ferragu is not entirely bearish on NVIDIA.

His target prices for Nvidia for one year and two years are $135 and $143, respectively, which means it may increase by 6% and 12% from the current level.

Although Ferragu has lowered the stock rating for Nvidia, he acknowledges its fundamental quality and considers buying Nvidia again only when the stock price remains low.

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.

Despite downgrading the stock rating for Nvidia,Ferragu is bullish on the stock performance of two other AI beneficiaries, AMD and Taiwan Semiconductor.The reason for this is their growth trends and valuations.

His twelve-month target prices for these two stocks are $235 and NT $1200, respectively, which is 38% and about 19% higher than their current stock prices.

Ferragu says that AMD and Taiwan Semiconductor are the most worthwhile stocks to hold in AI-benefit stocks with strong upside potential. In addition, other AI-concept stocks such as Broadcom, Arista Networks and Micron Technology are still attractive.