Wedbush still sees two threats to Nvidia stock Invezz
Wedbush Securities analyst is still keeping dovish on NVDA.
Nvidia stock is now up nearly 170% versus the start of 2023.
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Wedbush Securities continues to see at least some threats to Nvidia Corporation (NASDAQ: NVDA) even after it issued extraordinarily strong outlook for its current quarter.
The semiconductor behemoth expects its revenue to come in at about $11 billion in its second financial quarter as Invezz reported here.
In comparison, analysts were at $7.17 billion only. Still, Wedbush’s Matthew Bryson said today on CNBC’s “Street Signs Asia”:
Cloud players are working on building their own silicon (Google, Amazon, Facebook). Those large customers looking to use their own silicon for some of their internal workloads could weigh on market.
The analyst currently has a $290 price target on Nvidia stock that suggests about a 25% downside from here.
In the first quarter, though, Nvidia noted a 38% hit to revenue from its gaming division on a year-over-year basis.
Wedbush Securities’ Matthew Bryson dubs competition particularly from the likes of Advanced Micro Devices Inc (NASDAQ: AMD) as a possible threat to Nvidia stock as well.
The other player who’s gotten some traction is AMD who, to date, has captured share in the supercomputing market. If [that] starts to percolate, AMD is the other one to watch out for here.
Earlier this month, AMD also reported its financial results for the first quarter that came in slightly better than expected. Shares of the California-based company are also trending up this morning on the back of Nvidia’s strong results.
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