Moore downgraded Nvidia to equal weight from overweight and slashed his price target on the stock to $148 per share from $220. The new price target implies 7.2 percent upside from Monday’s close of $138.01. His old price target implied an upside of 59.4 percent.
Nvidia became the latest tech company to attribute a cut in its sales forecast to a slowdown in China. Earlier this month, Apple slashed its revenue guidance for the fiscal first quarter, citing a weakening economy in China and weaker-than-expected iPhone sales.
For Nvidia, “China has historically been a large market for graphics,” said Needham analyst Rajvindra Gill in a note Tuesday. “While NVDA does not break out its specific Chinese gaming exposure, desktop gaming is hugely popular in China and a big market for NVDA. Deteriorating conditions in the Chinese economy have adversely affected purchases of graphics cards, particularly high-end RTX GPUs.”
Gill downgraded Nvidia to underperform from buy, adding the stock could fall to $100 “or below.”
Timothy Arcuri, an analyst at UBS, upgraded Nvidia to buy from neutral on the back of its lowered sales forecast, however. In a note to clients on Tuesday, Arcuri said the stock’s move down “finally sets the stage for a new positive revision cycle starting this summer.”
contributed to this report.