Shares of technology company NVIDIA Corp. (NASDAQ: NVDA) tanked 9.5 percent after Nomura Instinet analyst Romit Shah downgraded the stock writing to investors, “We believe consensus is underappreciating a slowdown in gaming” and “investors should recognize that the market’s enthusiasm for Nvidia’s emerging businesses [in data centers and automotive] is historically short-lived.”
According to CNBC, Shah downgraded the stock to a reduce rating from a buy, dropping his price target from $100 to $90 a share, or about 19 percent below Wednesday’s close. BMO Capital Markets downgraded the stock from market perform to underperform based on the view that shares are overvalued, StreetAccount said.
Near the end of 2016, Nvidia shares fell after Citron Research tweeted: “Citron readers know we have long been fans of $NVDA, but now the mkt is disregarding headwinds. In 2017 we will see $NVDA head back to $90”