Published in Graphics
Analyst downgrades Nvidia on downward trend concerns
Hold, there's a bear on the loose
Much of the tech sector has seen quite a bit of volatility over past weeks, as the weak euro and the European debt crisis have prompted concerns among analysts and Nvidia is no exception.
Roth Capital analyst Arnab Chanda has downgraded Nvidia to hold from buy on concerns that Nvida is looking at a slowdown. Chanda believes that the European crisis will result in a significant drop in demand. Nvidia's stock shed around 30 percent since the start of 2010 and Chanda doesn't believe that the prices can recover in the short term.
“Near-term business momentum is slowing. We believe that Europe has been weaker than expected, and business trends have been slow,” said Chanda.
A month ago SmarTrend identified a downward trend for Nvidia and informed subscribers to quietly exit Nvidia when the price dropped below $15. Since then, Nvidia shed a further 15.9 percent of its market value. The stock closed at $12.70 on Thursday. Just one and a half months ago, on April 15, Nvidia was trading at $18.01.
However, it is worth noting that crisis has heavily affected the entire sector, including Intel and AMD, but at the moment Nvidia appears to be the hardest hit outfit.
More here and here.