Latest news with #B300
Yahoo
03-04-2025
- Business
- Yahoo
Nvidia Downgraded by HSBC as GPU Pricing Power Weakens
Nvidia (NASDAQ:NVDA) shares slid north of 6.5% Thursday after HSBC downgraded the stock from Buy to Hold, citing concerns that the chipmaker's pricing strength in the AI GPU space may be starting to fade. Top-rated analyst Frank Lee said Nvidia has seen strong momentum over the past two years, largely thanks to premium pricing on its AI GPUs. But that dynamic appears to be shifting. Lee pointed out that Nvidia's latest products including the B300 GPU and GB300 rack system aren't commanding significant price hikes over earlier versions. Warning! GuruFocus has detected 3 Warning Signs with NVDA. He also flagged that the company's upcoming Vera Rubin system doesn't expand GPU count per rack, sticking with 72 units the same as the current Blackwell system. Any increase won't come until Rubin Ultra arrives in 2027. Due to these concerns, HSBC cut its price target on Nvidia from $175 to $120 and lowered both revenue and earnings estimates for fiscal 2026. Still, Lee isn't walking away from the stock completely. He noted that longer-term opportunities in robotics and autonomous AI could eventually drive growth. But in the near term, Nvidia may face slower demand from cloud providers or a pause in large-scale AI orders from customers like DeepSeek. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
03-04-2025
- Business
- Yahoo
Nvidia Tumbles as HSBC Slashes Target, Warns of AI Slowdown
April 3 - HSBC just hit the brakes on Nvidia (NASDAQ:NVDA), downgrading the stock to "Hold" from "Buy". The firm sees little room for further gains in the near term as Nvidia enters a transition phase ahead of AI-driven growth in robotics and autonomous vehicles. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Shares dropped around 5% after markets opened on Thursday. HSBC also slashed its price target to $120 from $175, citing lower earnings expectations and a reduced P/E multiple. Despite meeting Q4 estimates and issuing solid Q1 guidance, Nvidia's stock is already down 26% from its January peak. The firm still expects strong growth, projecting fiscal 2026 revenue to jump 62% and EPS to rise 58%. But with GPU pricing power weakening, especially for models like the B300 and GB300 NVL72, upside momentum is fading. HSBC also flagged potential risks, including cloud provider spending uncertainty, supply chain constraints, and slowing demand from DeepSeek. While Nvidia's future in AI and robotics looks bright, HSBC thinks investors may have to wait longer for the next big breakout. This article first appeared on GuruFocus.
