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Nvidia
shares were falling on Monday after the stock was downgraded by a Baird analyst, who cited concerns over slowing consumer demand exacerbated by the Russian embargo.
Nvidia (ticker:
NVDA
) stock was down for its fifth consecutive day on Monday, losing 5.7% to $218.13. The stock has lost more than 19% over this five-day period, and 25% this year. This is the stock’s worst five-day stretch since March 16, 2020, when it fell 19.9%, according to Dow Jones Market Data.
Analyst Tristan Gerra lowered his rating on the stock to Neutral from Outperform and slashed his price target to $225 from $360.
“We believe order cancellations recently started in consumer GPUs,” he wrote in a research note on Monday.
The cancellations are driven by a combination of excess GPU, or graphics processing unit, in Western Europe and Asia, as well as a slowdown in consumer demand, especially in China, he said. Slowing consumer demand for GPUs was evident in the continuing reduction in graphics card pricing, he added.
A Barron’s stock screen identified Nvidia as one of 27 stocks that could demonstrate pricing power in an inflationary environment.
The macro field is also complicated for Nvidia, Gerra said. For one, recent Covid-related shutdowns in China could create further logistical problems for the company’s supply chain. Second, Russia “likely represents a larger percentage of consumer GPU than the consensus view, driven by both gamers and mining,” he said. The recent embargo on trade with Russia in the wake of the invasion of Ukraine could…
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