New Street Research has downgraded Nvidia (NASDAQ) from Buy to Neutral, citing limited upside potential. The AI chipmaker’s shares fell less than 1% pre-market. Analysts noted consensus expectations for GPU revenue growth align with their forecast of 35% in 2025 but see limited further upside unless the post-2025 outlook improves significantly.
Concerns over slowing hyperscale capital expenditures and rising competition from ASICs and AMD (NASDAQ) contribute to the downgrade. Nvidia’s current trading multiple of 40x NTM EPS is seen at risk of derating. New Street values Nvidia at 35x earnings, setting a one-year target price of $135, indicating around 5% upside. Analysts remain positive on Nvidia’s franchise quality but recommend buying only on prolonged weakness.
