BMO Capital Markets reiterated their $85 price target for NVIDIA Corp. (NASDAQ: NVDA) as it reflects a 15% drop from today’s open price. The firm had received an update from its Asian manufacturers in the technology hardware supply chain that indicated a graphics card shipment decline of 16 percent from December to March versus a 6 percent average within the last three years.
Share value began to decline this morning as BMO Capital Markets had shared the weak supply chain data on graphics card shipments in a note to clients on Sunday. Although Nvidia was one of the best performers of 2016, it seems that has carried over into 2017 as analysts expect much more from the company as of today.
“We believe this represents weakness in the channel versus the super-charged growth we have seen in the past several quarters, particularly for Nvidia’s graphics business,” analyst Ambrish Srivastava wrote.
“We also believe this data suggests that weakness in Nvidia’s gaming business might show up earlier than we had anticipated. We have expected comparisons to become weaker for this business as the year progressed.”