Nvidia Gets Rare Downgrade as Analyst Warns About Future Upside
Why did New Street Research downgrade Nvidia's stock?
New Street Research downgraded Nvidia's stock due to its current valuation, stating that the stock is "getting fully valued" after a significant rally. Analyst Pierre Ferragu believes that additional upside will only materialize in a bull case scenario with increased outlook beyond 2025, which he does not see happening yet.
What was Nvidia's stock performance percentage this year?
Nvidia's stock performance this year saw an impressive increase of 156%. This significant growth contributed to the company's strong market position and its status as a major beneficiary of the artificial intelligence spending boom. However, following this substantial increase, New Street Research analyst Pierre Ferragu downgraded the AI-focused chipmaker to neutral from buy, stating that the stock is "getting fully valued."
What is Nvidia's current price-to-revenue ratio?
Nvidia's current price-to-revenue ratio is not explicitly mentioned in the provided text. However, it is stated that Nvidia trades at nearly 23 times estimated revenue for the next 12 months.