Nomura Cuts NVIDIA (NVDA) Price Target As Customer Earnings Shows Data Center Growth Slowing

Nomura/Instinet analyst, Romit Shah, reiterated his Neutral rating on shares of NVIDIA (NASDAQ: NVDA) and cut his price target to $225 from $250 and suggests investors wait for a better entry point to buy into a "great multi-year growth story".

The analyst believes that Datacenter, which has been the primary driver of NVDA’s multiple expansion over the past two years, is showing end-market softness. He stated "We tracked nine major cloud computing customers’ 3Q18 results; of the seven that have reported thus far, five reported revenue growth that decelerated yoy. Each company that broke out Cloud/Software/Service revenue showed segment level deceleration".

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $215.00 yesterday.

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