{"id":543375,"date":"2024-07-06T09:15:41","date_gmt":"2024-07-06T07:15:41","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=543375"},"modified":"2024-07-06T09:16:52","modified_gmt":"2024-07-06T07:16:52","slug":"nvidias-crazy-rally-has-run-out-of-steam-analyst","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/business\/543375-nvidias-crazy-rally-has-run-out-of-steam-analyst.html","title":{"rendered":"Nvidia’s crazy rally has run out of steam \u2014 Analyst"},"content":{"rendered":"

Nvidia Corp.\u2019s breakneck rally since the start of last year has finally run out of room to push higher, according to New Street Research analyst Pierre Ferragu.<\/p>\n

Ferragu downgraded the AI-focused chipmaker to neutral from buy, writing that the stock is \u201cgetting fully valued\u201d after soaring 154% this year, on top of a gain of almost 240% in 2023.<\/p>\n

Shares fell 1.9% on Friday, compared with a gain of 1% for the Nasdaq 100 Index.<\/p>\n

Additional upside \u201cwill only materialise in a bull case, in which the outlook beyond 2025 increases materially, and we do not have the conviction on this scenario playing out yet,\u201d Ferragu wrote.<\/p>\n

While the \u201cquality of the franchise is nevertheless intact,\u201d there is, \u201cif anything, a risk of derating\u201d should the current outlook remain unchanged, he added.<\/p>\n

Nvidia is the second-best performer among S&P 500 components this year, behind Super Micro Computer Inc, another favourite among AI investors.<\/p>\n

The climb has added almost $1.9 trillion to Nvidia\u2019s market capitalisation, and briefly resulted in it attaining the title of the world\u2019s largest company.<\/p>\n

Analyst downgrades are rare for a company that has become the biggest beneficiary of the artificial intelligence spending boom. Nearly 90% of the analysts tracked by Bloomberg recommend buying the stock.<\/p>\n

However, valuation is often cited as a concern. Nvidia trades at more than 22 times estimated revenue for the next 12 months, making it the most expensive stock in the S&P 500 Index by this measure.<\/p>\n

New Street set a one-year price target of $135 for Nvidia, compared with its Friday close of $125.82.<\/p>\n

Beyond Nvidia, New Street is positive on both Advanced Micro Devices Inc. and Taiwan Semiconductor Manufacturing Co Ltd., citing their growth trends and valuations.<\/p>\n

AMD and TSMC are \u201cthe best names to own in the group, offering strong upside in both in our base and high scenarios,\u201d New Street said in a note, adding that among other stocks with AI exposure, Broadcom Inc., Arista Networks Inc. and Micron Technology Inc. all \u201cremain attractively valued.\u201d<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Nvidia’s breakneck rally since the start of last year has finally run out of room to push higher, according to New Street Research analyst Pierre Ferragu.<\/p>\n","protected":false},"author":341034,"featured_media":509656,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[92837,19],"tags":[577,11941,60459,95913,3838,95915,56202,12473],"class_list":["post-543375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","category-business","tag-amd","tag-artificial-intelligence","tag-big-tech","tag-new-street-research","tag-nvidia","tag-pierre-ferragu","tag-super-micro","tag-tsmc"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/543375"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=543375"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/543375\/revisions"}],"predecessor-version":[{"id":543383,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/543375\/revisions\/543383"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/509656"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=543375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=543375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=543375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}