Tech stocks saw a major decline throughout the week, despite the plunge, Citron turned bullish for Nvidia Corporation (NASDAQ: NVDA). Citron tweeted on Tuesday that it upgraded and bought into Nvidia. Shares surged on Tuesday by 14% after Citron upgraded the stock.
“This is the first time in 2 years stock offers an appealing risk-reward to investors. $NVDA still a player in AI and Data..will eat through inventory issue.” tweeted Citron.
Citron upgraded its price target to USD 165. The firm said it sees shares hitting USD 165 before it hits USD 120.
Tech stocks have plunged since they went into bear territory in the beginning of October. Nvidia shares have fallen 48% during that period. The Company’s stock took a major loss after it missed its third quarter financial results, causing it to plunge by 15% then.
Nvidia’s weaker-than-expected results were mainly due to an excess of its mining GPUs for cryptocurrency. Nvidia plans to correct its inventory moving forward now. Chief Executive Officer Jensen Huang said in a release after the earnings call that Nvidia does not intend to do any cryptocurrency business.
Alongside Citron, other Wall Street analysts see the same upside potential for Nvidia despite the decline over the past few months.
“Near-term softness on excess channel inventory, but secular growth in datacenter and gaming still intact,” said JPMorgan analyst Harlan Sur.
“Long-term thesis seems intact; Buy the dip,” said William Stein, analyst at Suntrust Robinson Humphrey. “Datacenter, Pro-Viz, and Automotive results support our structural growth view.”
Cowen & Co. analyst Matthew Ramsay reiterated his upbeat stance on Nvidia due to the Company’s prospects following recent management meetings, but still slashed his price target from USD 320 to USD 265.