Nvidia Gets Rare Downgrade on Valuation Concerns After Rally
- Stock is ‘getting fully valued,’ despite AI demand: New Street
- Shares are second-best performer on S&P 500, up 154% this year
Nvidia Corp.’s breakneck rally since the start of last year has finally run out of room to push higher, according to New Street Research analyst Pierre Ferragu.
Ferragu downgraded the AI-focused chipmaker to neutral from buy, writing that the stock is “getting fully valued” after soaring 154% this year, on top of a gain of almost 240% in 2023. Shares fell 1.9% on Friday, compared with a gain of 1% for the Nasdaq 100 Index.