Last Friday, an analyst on Wall Street unusually downgraded the stock.$NVIDIA (NVDA.US)$The stock rating.

In a report last Friday, Pierre Ferragu, an analyst at New Street Research, downgraded the stock rating of the AI giant from 'buy' to 'neutral', believing that the stock price seems to have 'fully reflected the valuation'.

Nvidia's stock price suddenly plunged in the closing session that day, and by the close, the stock price plummeted nearly 2%, with a total market cap evaporating $60.3 billion in a single day (about RMB 440 billion).

However, Ferragu did not say that he was pessimistic about the stock; he was just not as optimistic as many others on Wall Street lately.

The analyst set the company's target prices for Nvidia's stock for one year and two years at $135 and $143, respectively, which means that the stock has 6% and 12% potential upside compared to the current level.

Ferragu said: 'Based on what we hear in the value chain, we think its further upside is limited. We downgraded the stock rating to 'neutral' today because it will only rise under the bull market scenario of substantial growth after 2025, and we do not have confidence in that yet.'

Ferragu said that although Nvidia still has the strongest AI business among its competitors, it is necessary to 'take a more cautious view' after a 157% increase so far this year.

Ferragu said: 'Nevertheless, this position is still intact, and we will buy Nvidia's stock again, but only in the case of long-term weakness of the stock.'

According to Bloomberg's data, negative evaluations of Nvidia by Wall Street analysts are rare, with 89% of the 72 analysts rating Nvidia's stock as 'buy'.

Ferragu set Nvidia's end-of-year target price for the stock at $135, consistent with the stock's 12-month average target price of $134.77.

Eric Jackson, founder of hedge fund EMJ Capital, predicts that Nvidia's stock price will double by the end of this year, and the market cap will reach $6 trillion.

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