Analysts Are Downgrading These 5 Stocks

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 110   

NVIDIA Corporation (NASDAQ:NVDA) is a visual computing firm. Hedge funds have been piling into the stock as the share price falls amid a broader lull around growth stocks. At the end of the fourth quarter of 2021, 110 hedge funds in the database of Insider Monkey held stakes worth $10.4 billion in NVIDIA Corporation (NASDAQ:NVDA), compared to 83 the preceding quarter worth $10 billion.

On February 17, Summit Insights analyst Kinngai Chan downgraded NVIDIA Corporation (NASDAQ:NVDA) stock to Hold from Buy, noting that the gross margin for the firm was now close to peaking and there was a “higher possibility” of downside risk from crypto mining. 

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”

You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.

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