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NVIDIA Falls Following Nomura Downgrade, Analyst Concerned About Slowdown In Gaming

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NVIDIA Falls Following Nomura Downgrade, Analyst Concerned About Slowdown In Gaming
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NVIDIA Corporation (NASDAQ: NVDA) shares traded lower during Wednesday's after-hours session following a post-market downgrade from Nomura.

About an hour into the after-hours session, NVIDIA shares traded down nearly 2 percent to $108.82.

Nomura analyst Romit Shah lowered his recommendation on the stock from Buy to Reduce, a multi-notch downgrade. The analyst reduced his price target on NVIDIA shares from $100 to $90.

From where the stock is trading during Wednesday's after-hours session, Shah's new price target represented potential downside of about 17 percent.

Update: Click here for a full recap of Shah's downgrade.

Shah highlighted a concern with an integral part of NVIDIA's business: gaming. The analyst noted a belief the sell-side consensus has underappreciated the slowdown in video gaming.

Related Link: The Consensus On NVIDIA Is Still Pretty Positive

NVIDIA was one of the top performers in 2016, rising more than 200 percent.

NVIDIA shares have fallen about 5 percent since the company reported fourth-quarter results on February 9. Over the same time frame, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up about 3 percent.

Today's news was first highlighted on Benzinga's Pro platform, a real-time solution for getting up-to-date breaking news.

To see all the recent recommendation changes on shares of NVIDIA, check out Benzinga.com's Analyst Ratings page for NVIDIA.

Latest Ratings for NVDA

DateFirmActionFromTo
May 2018Cowen & Co.Initiates Coverage OnOutperform
May 2018UBSMaintainsNeutralNeutral
May 2018B. Riley FBRMaintainsBuyBuy

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

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