Fly News Breaks for February 25, 2020
Feb 25, 2020 | 06:02 EDT
Nomura Instinet analyst David Wong last night downgraded Nvidia to Reduce from Neutral with a price target of $230, down from $235. The stock closed Monday down 7%, or $20.79, to $273.28. Risks to the global semiconductor industry posed by the coronavirus outbreak have grown over the last few weeks, Wong tells investors in a research note. Many investors and companies may have underestimated the risk of the current issues impacting electronics end market demand through 2020, adds the analyst. Wong points out that Nvidia's Gaming segment accounted for 56% of total revenues in the January 2020 quarter. He considers the company's gaming graphics processing units and Nintendo Switchbased chips to be consumer discretionary items. Economic dislocations resulting from the coronavirus outbreak pose risk to demand in most electronic end markets, but the end markets associated with consumer purchases might have the most potential downside, says Wong.
News For NVDA From the Last 2 Days