Nvidia: shares down; Credit Suisse cuts estimates
(CercleFinance.com) - Shares in US graphics chipmaker Nvidia are currently down 3% at 138.
6 dollars, going against the grain in a bullish market, as Credit Suisse cut its forecasts for the company, saying "inventory overhang persists."
Credit Suisse says it is adjusting its estimates for 2020 and 2021, despite the upcoming launch of the new RTX 2060 chip, based on checks that suggest excess graphics inventory is here to stay.
The broker says inventory remains high due to slower demand (China trade, macro factors) and manufacturers' reluctance to cut their prices.
However, Credit Suisse still sees a favourable risk/reward ratio for the share, saying Nvidia remains a "key beneficiary" of the development of AI, hence maintaining its "outperform" rating and its target price of 225 dollars.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
6 dollars, going against the grain in a bullish market, as Credit Suisse cut its forecasts for the company, saying "inventory overhang persists."
Credit Suisse says it is adjusting its estimates for 2020 and 2021, despite the upcoming launch of the new RTX 2060 chip, based on checks that suggest excess graphics inventory is here to stay.
The broker says inventory remains high due to slower demand (China trade, macro factors) and manufacturers' reluctance to cut their prices.
However, Credit Suisse still sees a favourable risk/reward ratio for the share, saying Nvidia remains a "key beneficiary" of the development of AI, hence maintaining its "outperform" rating and its target price of 225 dollars.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.