Skip to content

Analyst downgrades Nvidia stock to ‘Sell’

Analyst downgrades Nvidia stock price to ‘Sell’
Jordan Major

Analysts typically consider a range of factors when revising stock forecasts, including Nvidia’s strides in AI technology, its expanding footprint in data centers, and the growing demand for its GPUs within AI and machine learning applications. 

Upward revisions in recent months have reflected Nvidia’s strong positioning in the AI chip market, with innovative products like the H100 Tensor Core GPU enhancing its competitive edge. 

As industries continue adopting AI-driven solutions, demand for Nvidia’s hardware shows no signs of slowing, fueling an overall bullish sentiment among many analysts.

However, on October 30, 2024, Punto Research downgraded Nvidia Corporation (NASDAQ: NVDA) from a ‘Hold’ to a ‘Sell,’ setting a target price of $126.70. 

NVDA stock downgrade. Source. MarketScreener

Why Nvidia was downgraded to a ‘Sell’

The price target highlights concerns about Nvidia’s current valuation and potential market challenges, as reported on market screen platforms. With Nvidia closing at approximately $132.76 on October 31, this downgrade implies a potential downside of about 4.6% based on Punto Research’s target.

This downgrade stands in contrast to recent analyst perspectives that have generally maintained a positive outlook on NVDAs growth trajectory.

In response to the recent downgrade, some onlookers raised questions about Punto Research’s (Punto Casa de Bolsa) credibility, with one stock trader commenting, “Who the heck is ‘Punto Casa de Bolsa’? Never heard of this group or analyst firm. Downgrading $NVDA? I am sure that is fine.” 

As of now, Nvidia’s stock has been fluctuating within the $121.83 – $144.42 range, currently sitting near the midpoint. Key resistance levels can be observed between $140.07 and $143.72, influenced by several trend lines and critical moving averages across time frames. 

Support may be found at $118.11, according to horizontal patterns on the daily chart. As such, while the stock remains stable, these resistance and support levels could play a role in its near-term movement, especially amid mixed market sentiment.

Finally, Finbold reached out to Punto Casa de Bolsa for further clarification on the rationale behind the downgrade; however, no response has been received at the time of publication.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.