Analyst are Cutting Estimates on These 5 Tech Stocks

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation (NASDAQ:NVDA) is headquartered in Santa Clara, California, operating as a provider of graphics, cloud computing, semiconductors, and networking solutions in the United States, Taiwan, China, and internationally. Goldman Sachs analyst Toshiya Hari on July 15 lowered the price target on NVIDIA Corporation (NASDAQ:NVDA) to $166 from $192 and reiterated a Neutral rating on the shares. The analyst slashed estimates and targets across the semiconductor space to account for “continued deterioration in the macro/operating environment and recent industry data points”. The analyst cut 2023 earnings forecasts for semiconductor and semiconductor capital equipment names by 20%, and now his 2023 estimates are 22% and 27% behind Street consensus, respectively. 

According to Insider Monkey’s database, 102 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of Q1 2022, down from 110 funds in the earlier quarter. Fisher Asset Management, with a $2 billion stake, features as a prominent shareholder of the company. 

Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:

“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.

We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”