Posted 1/3/2024, 10:48:00 AM
Nvidia Faces Risk of 15% Stock Drop as AI Investment Hype Cools, Analysts Say
- Analysts see 15% downside risk for Nvidia stock as AI hype approaches "trough of disillusionment"
- Project 20% CAGR for Nvidia across cycles, but skepticism that consensus expectations will materialize
- Expect reversion to trend line in next 2-6 quarters as AI investment pulls back after 2023 peak
- Initiated at Neutral with $410 price target, implying 15% downside from recent prices
- Basing target on 35x multiple on CY24 EPS plus $155 value for residual AI-related sandbox revenue