Analysts are Slashing Price Targets of These 5 Semiconductor Stocks

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation (NASDAQ:NVDA) is the inventor of the graphic processing unit (GPU) and is currently a leader in the artificial intelligence cloud computing segment.

On July 14, Tristan Gerra at Baird lowered the price target on NVIDIA Corporation (NASDAQ:NVDA) from $165 to $150 and reiterated a Neutral rating on the stock. The revised target price is 4.8% lower than the last closing price as of July 15. The analyst lowered the target price because he thinks that NVIDIA Corporation (NASDAQ:NVDA) has an excessive inventory of GPUs due to a slowdown in various end markets. Gerra believes that NVIDIA Corporation (NASDAQ:NVDA) would have to lower its shipment of GPUs before the launch of the RTX 40 chip series. Furthermore, the company’s monthly graphic card sales are also weak when compared to previous seasonal sales data.

Here’s what ClearBridge Investments said about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:

“Gaming is an attractive end market within the media/technology sector with strong growth and a long runway, particularly in mobile gaming. Unity’s platform provides an engine and toolkit for development and monetization of games, e-commerce and industrial applications, adding to our industry exposure, which also includes Nvidia (NASDAQ:NVDA) in graphic processing chips.”

ARK Investment Management is the leading hedge fund holder of NVIDIA Corporation (NASDAQ:NVDA) as of Q2 2022.

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