Nvidia receives rare Sell rating as Seaport initiates coverage
Nvidia (NASDAQ:NVDA) received a rare Sell rating as Seaport Research Partners, an investment bank and research firm, initiated coverage on the semiconductor stalwart.
Seaport senior analyst Jay Goldberg, in a Wednesday investor report, said:
Nvidia is one of the leading beneficiaries of the current AI spending boom, but its prospects are well understood and largely priced into the stock,
The firm also gave Nvidia a $100 price target.
Goldberg noted that Nvidia’s Blackwell line is already sold out for the year as it is constrained by packaging capacity at Taiwan Semiconductor Manufacturing (TSM), and the increasing complexity of Nvidia’s systems present challenges in the supply chain. He also referenced “growing pains” as customers search for use cases and how to generate returns from large AI investments.
He added,
AI is probably not a ‘Bubble,’ but it may take many years before true utility becomes apparent,
“AI may do well this year, but NVDA is likely to underperform relative to peers.”
A Sell rating is a rare occurence for Nvidia these days. A Seeking Alpha breakdown of Wall Street analysts ratings shows that out of 62 analysts in the last 90 days, 43 rate Nvidia a Strong Buy, 12 rate it a Buy and seven have applied a Hold rating. Seeking Alpha analysts have more diverse ratings, with 16 assigning a Strong Buy, 22 at Buy, 11 at Hold, five at Sell and four at Strong Sell.
Nvidia shares were down 2.5% by noon trading on Wednesday.
Seaport initiated coverage of a handful of semiconductor companies on Wednesday:
- Broadcom (NASDAQ:AVGO) received a Buy rating and $230 price target
- Intel (NASDAQ:INTC) at Sell and $18
- Advanced Micro Devices (NASDAQ:AMD) at Buy and $110
- Texas Instruments (NASDAQ:TXN) at Sell and $130
- Analog Devices (NASDAQ:ADI) at Sell and $155
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Nvidia receives rare Sell rating as Seaport initiates coverage, source
