Thursday, February 23, 2017

More on NVIDIA's Big (loser) Day (NVDA)

From MarketWatch:

Nvidia’s stock rocked after analysts say it’s time to sell 
Shares of Nvidia Corp. plunged on heavy volume on Thursday, after two Wall Street analysts swung to rare bearish ratings on the graphics chip maker, citing concerns over valuation and a tempered outlook for gaming.

Analyst Romit Shah at Instinet downgraded Nvidia to reduce from buy. Shah also slashed his stock price target to $90, which is 10% below current levels, after raising it to $100 from $80 just two weeks ago.

BMO Capital analyst Ambrish Srivastava dropped his rating to underperform, after being at market perform for at least the last 2 1/2 years. He cut his stock price target to $85, or 15% below current levels, after raising it to $100 from $75 less than three weeks ago.

Nvidia’s stock NVDA, -9.27%  tumbled $10.27, or 9.3%, to suffer the biggest price decline since it went public in January 1999. The one-day percentage selloff was the stock’s biggest since it dropped 9.5% on Aug. 4, 2011. Volume spiked to 39.5 million shares, which was about 2 1/2-times the full-day average.

The stock has still more than tripled over the past 12 months, as investors rewarded the company for shifting its focus toward technologies used in artificial intelligence and autonomous cars. That compares with a 61% surge in the PHLX Semiconductor Index SOX, -1.64%  and the S&P 500 index’s SPX, +0.04%  23% rally over the same time....MORE
And two from Investor's Business Daily:

Tech Stocks Sink; Why Nvidia, InterDigital, Jack Triggered Clear Sell Signals
More high-growth companies issued sell signals on their daily and weekly charts Thursday as the Nasdaq composite lagged the NYSE indexes and the Russell 2000 lost 0.7%.

Nvidia (NVDA), which initially showed signs of overheating back in the final week of December as it staged a climax run, dropped 9% and fell sharply below its key 50-day moving average for the first time since its huge run began with a cup-with-handle breakout at 33.16 in mid-March of 2016. A few analyst downgrades sparked the increased selling pressure.

The chip designer and leader in graphic processors still hasn't fallen that much from its all-time peak of 119.93. At 16% below that peak, the stock could end up forming a new base, but it would be good to see Nvidia undercut its recent low of 99.11. That would serve to reset the base count.

Nvidia Breaks Support As Analysts Say Sell...
Graphics chipmaker Nvidia (NVDA) was hit with two stock downgrades on Thursday, while recent semiconductor IPO Impinj (PI) received a new buy rating.

BMO Capital Markets lowered its rating on Nvidia to underperform from market perform and cut its price target to 85 from 100. Nomura Instinet lowered its rating on Nvidia to reduce from buy and cut its price target to 90 from 100.

Nvidia shares crashed 9.3% to 100.49 on the stock market today, plunging below their 50-day moving average. Nvidia has tested its 50-day line several times in its huge run, including earlier this month, but hadn't closed below that key support level in a year....MORE

"Nvidia Drops 9%: Stock’s Valuation ‘Unsustainable,’ Says Instinet" (NVDA)