Skip to Main Content.
Site navigation
Fidelity.com Home
  • Customer Service
  • Profile
  • Open an Account
  • Virtual Assistant
  • Log In
  • Customer Service
  • Profile
  • Open an Account
  • Virtual Assistant
  • Log Out
  • Accounts & Trade
    • Portfolio Log In Required
    • Portfolio
    • AccountPositions Log In Required
    • AccountPositions
    • Trade Log In Required
    • Trade
    • Trading Dashboard Log In Required
    • Trading Dashboard Log In Required
    • Active Trader Pro
    • Transfers
    • Cash Management Log In Required
    • Cash Management
    • Bill Pay Log In Required
    • Bill Pay
    • Full View Log In Required
    • Full View
    • Security Settings Log In Required
    • Security Settings
    • Account Features Log In Required
    • Account Features
    • Documents Log In Required
    • Documents
    • Fidelity Alternative Investments Program Log In Required
    • Tax Forms & Information
    • Retirement Distributions Log In Required
    • Fidelity Rewards+registered trademark Log In Required
    • Fidelity Rewards+registered trademark Log In Required
    • New Account Checklist Log In Required
    • Lending Solutions-Line of Credit Log In Required
    • Refer a Friend
  • Planning & Advice
    • What We Offer
    • Build Your Free Plan
    • My Goals
    • Financial Basics
    • Building Savings
    • Robo Investing Plus Advice
    • Wealth Management
    • Find an advisor
    • Retirement
    • Life Events
    • Saving & Investing for a Child
    • Charitable Giving
    • Philanthropic Consulting
    • Life Insurance & Long Term Care Planning
  • News & Research
    • News
    • Wealth Management Insights
    • Watch List Log In Required
    • Quotes
    • Quotes
    • Alerts Log In Required
    • Mutual Funds
    • Stocks
    • Fixed Income, Bonds & CDs
    • ETFs
    • Options
    • Markets & Sectors
    • IPOs
    • Annuities
    • Learning Center
    • Notebook
    • Notebook
  • Products
    • Mutual Funds
    • Retirement & IRAs
    • Stocks and Trading
    • Crypto
    • Direct Indexing
    • Fixed Income, Bonds & CDs
    • ETFs
    • Options
    • Sustainable Investing
    • Spending & Saving
    • Managed Accounts
    • 529 College Savings
    • Health Savings Accounts
    • Annuities
    • Life Insurance
  • Why Fidelity
    • The Fidelity Advantage
    • Planning & Advice
    • Trading
    • Straightforward Pricing
    • Insights & Tools
    • Security & Protection
    • Marketplace Solutions
    • About Fidelity
    • Careers
  • Customer Service
  • Profile
  • Open an Account
  • Virtual Assistant
  • Log In
  • Customer Service
  • Profile
  • Open an Account
  • Virtual Assistant
  • Log Out
Content and data provided by various third parties and Fidelity − Terms of Use
  • Research >
  • Stocks >
  • News & Events >

Stock Details


  • Snapshot
  • Detailed Quote
  • Advanced Chart &
    Technical Analysis Opens in New Window
  • News & Events
  • Compare
  • Analyst Opinions
  • Research Reports
  • Key Statistics
  • Earnings
  • Dividends
  • Ownership & Insiders
  • Financial Statements
  • SEC Filings

RELATED RESOURCES

  • Stock Research Overview
  • Stock Screeners
  • Markets & Sectors
  • Fidelity Learning Center Opens in New Window
Print Format
Change Text Size:
  • Default text sizeA
  • Larger text sizeA
  • Largest text sizeA

Nvidia Price Target Slashed By As Much As 33% Following Downward Revision In Outlook

BY Benzinga
— 3:44 PM ET 08/09/2022

On August 8, Nvidia Corp NASDAQ: NVDA shared preliminary second-quarter revenue of $6.70 billion versus the previous outlook of $8.10 billion. 

The revision was attributable to lower sell-in of Gaming products, reflecting a reduction in channel partner sales likely due to macroeconomic headwinds. It also implemented pricing programs with channel partners to reflect challenging market conditions likely to persist into the third quarter.

Barclays analyst Blayne Curtis had an Overweight rating on Nvidia and a $200 price target, down from $295. Gaming reset was worse than shallow expectations and even included a $1.3 billion charge suggesting a weak outlook into the fall, he noted.

Data Center missed slightly on supply chain issues, but investors will likely rally behind the de-risked gaming estimates if DC can hold in for CY23. 

Mizuho analyst Vijay Rakesh reiterated a Buy and cut the PT from $290 to $250. The re-rating reflected declining crypto share and weaker Consumer PC/Gaming.

NVDA noted that July quarter Gaming saw lower channel sell-through due to macro risks likely to persist in the October quarter. Data Center was slightly weaker due to supply chain disruptions. 

Rakesh saw NVDA well-positioned with Data Center and AI leadership, and the near-term reset could be an attractive entry point. 

Rosenblatt analyst Hans Mosesmann reiterated a Buy and cut PT from $400 to $320. Nvidia negatively preannounced its July quarter this morning, now expecting a 19% Q/Q sales decline driven by a collapse in Gaming down 44% Q/Q as discretionary spending and macroeconomic headwinds impact the company's consumer business, he noted.

The magnitude of the revision surprised him and reflected a significant change in market dynamics that he believes has little to do with crypto mining issues.

Mosesmann believed that part of the discrete GPU AIB market also saw a fair amount of inventory stuffing in the channel earlier in the year, leading the GPU segment to a depressed sales level through the rest of calendar 2022.

Lowering the bar on Gaming is something that Morgan Stanley analyst Joe Moore sought. It meaningfully reduces the risks that have kept him on the sidelines for 4-5 months, and he is constructive. 

But the rally in NVDA ($182 PT) stock while numbers come down amid growing data center risk leaves him Equalweight for now. Joe notes that Gaming was down 44% Q/Q to $2 billion, vs. last quarter's $3.6 billion and his estimate of $3.2 billion. 

Beyond the October quarter, there are two significant impacts to consider, somewhat offsetting Joe. He anticipates that the launch of the 40 series, code-named "Lovelace," will have a material positive impact. 

But Joe also believes that the migration of Ethereum to proof of stake will result in the obsolescence of multiple billions of dollars of mining capacity. 

Joe does anticipate that there will be an inventory digestion phase in the cloud next year. Still, he is modeling assuming that the company continues to see solid growth even in an overall digestion cycle, but there is some risk. 

Price Action: NVDA shares traded lower by 3.73% at $171.30 on the last check Tuesday.

More NVDA News

  • Intel Stock Is Falling Again Today Following Micron, Nvidia News: What's Happening?
    Benzinga - 1:47 PM ET 08/09/2022
  • Why Texas Instruments Shares Are Diving Lower Tuesday
    Benzinga - 1:45 PM ET 08/09/2022
  • 10 Information Technology Stocks With Whale Alerts In Today's Session
    Benzinga - 1:38 PM ET 08/09/2022
Fidelity Investments. Copyright 1998–2023 FMR LLC. 
All rights reserved. 

  • Terms of Use|
  • Privacy|
  • Security|
  • Site Map 
Close