A Wall Street analyst cut his price target on Nvidia stock on Monday, citing "a multitude of factors (that) have clouded the near term."
Melius Research analyst Ben Reitzes reiterated his buy rating on Nvidia stock but slashed his two-year price target to 170 from 195.
On the stock market today, Nvidia stock fell 5.1% to close at 106.98.
Nvidia and other AI stocks have been pressured by "potential tariffs, regulations and bans (and) innovations that make computing cheaper," Reitzes said in a client note. "As a result, AI semis and hardware stocks are trading like no one knows what's going on — including shares of Nvidia."
The next potential catalyst for Nvidia stock will be the company's GTC conference next week in San Jose, Calif. Nvidia Chief Executive Jensen Huang will give a keynote speech on March 18.
Huang might be able to calm investors by focusing on the continued potential for artificial intelligence, Reitzes said. Areas of great promise include AI agents that could replace "overpriced seat-based SaaS" (software as a service), autonomous vehicles, and robots to augment the workforce. AI also could find cures for diseases and cancer, he said.
Nvidia Stock, Others 'On Sale'
At GTC, Nvidia is likely to detail its upcoming Blackwell Ultra graphics processing unit (GPU) and GB300 system, due out later this year. It also could preview its Rubin GPU and Arm-based central processing unit (CPU) called Vera, which are scheduled for 2026.
"At this point, we believe Nvidia and several others in the AI semis and hardware space are on sale and good buys right now," Reitzes said. "It doesn't mean that the stocks will work in the very near-term since there may not be visibility on key issues regarding regulations and geopolitics including tariffs."
Reitzes on Monday also trimmed his price targets on buy-rated Apple, Arista Networks, Cisco, Dell Technologies and Marvell Technology.
Nvidia stock is on the IBD Tech Leaders list along with Apple, Arista and Marvell.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
